Maharashtra’s biggest industrial land parcel of over 5,286 acres was sold to Reliance Industries Ltd. at a valuation of just Rs 2,200 crore.
According to credit rating agency Care Ratings, since Navi Mumbai IIA Private Limited (NMIIA), formerly called Navi Mumbai SEZ has been cleared by the Environment Ministry, the demand for the plots within the area are expected to increase. Furthermore, there is no major capital expenditure left to be incurred in the project, and there has been a significant appreciation in the value of land in the last couple of years.
But this economic value does not seem to reflect in the acquisition cost.
The Navi Mumbai SEZ was once said to be valued as having economic potential of over Rs 1 lakh crore due to two key infrastructures - the Mumbai Trans Harbour Link, or Atal Setu, and Navi Mumbai Airport. Navi Mumbai SEZ being in close proximity to the upcoming Navi Mumbai International Airport, the Jawaharlal Nehru Port, the Mumbai Trans Harbour Link (Atal Setu), and the Mumbai-Pune Highway puts this industrial zone at a strategic location.
Anand Jain-promoted Jai Corp Ltd. informed the stock exchange that Urban Infrastructure Holdings Pvt. Ltd., a company in which his company holds 32%, is convening an extraordinary general meeting of shareholders to approve capital reduction proposed by the company.
The company informed the stock exchange that the subsidiary of Urban Infrastructure Holdings Pvt. Ltd., i.e., Dronagiri Infrastructure Pvt. Ltd. (DIPL), sold its 74% stake in Navi Mumbai IIA Pvt. Ltd. for Rs 1,628.03 crore, valuing the company at Rs 2,200 crore to Reliance Industries Ltd.
The Mukesh Ambani company informed the exchanges on Dec. 13, 2024, that pursuant to the waiver of the first right of refusal by the City and Industrial Development Corporation of Maharashtra Ltd. or CIDCO, it has bought 57.12 crore equity shares representing 74% of Navi Mumbai IIA Private Limited (NMIIA), formerly called Navi Mumbai SEZ, at a price of Rs 28.50 per equity share, aggregating Rs 1,628.03 crore, valuing the 5,286-acre project at an equity value of Rs 2,200 crore.
Subsequent to the acquisition, Navi Mumbai SEZ became a 74% subsidiary of the company, it said in a disclosure to the stock exchange. The Navi Mumbai SEZ in the financial year ending March 2018 was allowed by the Maharashtra government to be converted from SEZ into an Integrated Industrial Area (IIA). It has been appointed as the Special Planning Authority for the notified areas of Dronagiri, Kalamboli, Ulwe (Waterfront), and Ulwe (Airport) Nodes of Navi Mumbai, under the provisions of the Maharashtra Regional and Town Planning Act, 1966.
RIL, in its statement, said that the investment is not a related party transaction and none of the company’s promoters, the promoter group, or group companies have any interest in the above transaction. But Urban Infrastructure Holdings Private Ltd. (UIHPL) is owned 33% by Reliance (Mukesh Ambani) group companies, 32% by Jai Corp Group led by Anand Jain and SKIL Infrastructure, which is currently under NCLT proceedings, held 35% as per its annual report for the financial year ending March 2023.
