Reliance Industries Restructures AI Subsidiary, Allocates 30% Stake to Meta

Reliance Industries Limited: Update on Reliance Enterprise Intelligence Limited (REIL)

February 25, 2024

Reliance Industries Limited has informed the stock exchanges that Reliance Enterprise Intelligence Limited (REIL) has ceased to be a step-down wholly owned subsidiary of the company following a fresh equity allotment.

Key Details

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• 85,31,75,000 equity shares of face value ₹10 each at par were allotted by REIL to its investors.
• 59,66,22,500 equity shares, aggregating ₹596.6 crore, were allotted to Reliance Intelligence Limited, a wholly owned subsidiary of Reliance Industries Limited.
• 25,65,52,500 equity shares, aggregating ₹256.6 crore, were allotted to Facebook Overseas Inc, a wholly owned subsidiary of Meta Platforms Inc.

Post-Allotment Structure

Following the equity allotment, Reliance Intelligence Limited holds 70% of the total equity capital of REIL, while Facebook Overseas Inc holds the remaining 30%.

As a result of the change in ownership structure, REIL has ceased to be a step-down wholly owned subsidiary and has become a step-down subsidiary of Reliance Industries Limited.

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Regulatory Compliance

The company has obtained all necessary approvals for the investment and clarified that the transaction between REIL and Facebook Overseas Inc is not a related party transaction. The transaction between REIL and Reliance Intelligence Limited is a related party transaction conducted on an arm's length basis.

Disclosure

The company further stated that none of its promoter, promoter group, or group companies have any interest in the transaction.