Reliance Industries’ subsidiary company Nauyaan Trading has acquired an additional 9.9 per cent stake in Nauyaan Shipyard. In an exchange filing, Reliance Industries said that the subsidiary company has bought the stake in Nauyaan Shipyard for Rs 54.70 crore.
Furthermore, the exchange filing detailed that Reliance Industries’ subsidiary company has bought the additional stake from Welspun Corp. The additional stake purchase in Nauyaan Shipyard takes the total shareholding of Reliance Industries group to 93.9 per cent, as the group already has an 84 per cent shareholding in the company.
Reliance Industries’ acquisition of Nuayaan companies
Earlier in March this year, Reliance Industries purchased a majority stake in Nuayaan Shipyard and a 100 per cent stake in Nuayaan Trading from Welspun Corp. The deal was carried through Reliance Strategic Business Ventures Limited, a fully owned subsidiary of Reliance Industries.
In the stake purchase deal, Reliance Strategic Business Ventures acquired a 100 per cent stake in Nuayaan Trading for Rs 1 lakh and a 74 per cent stake in Nuayaan Shipyard for Rs 382.73 crore.
Strategic importance of Nuayaan Shipyard for RIL
Incorporated in July 2021, Nuayaan Shipyard has an enterprise value of Rs 643 crore. Located in Dahej, Gujarat, Nuayaan Shipyard has 138 acres of land under lease situated near the manufacturing plant of Reliance Industries. The acquisition of Nuayaan Shipyard by Reliance Group gives the company the right to use the land for company operations.
As Reliance Industries is looking to expand its shipyard operations, the acquisition of Nuayaan Shipyard is going to have strategic importance for the company. Reliance Industries has already rebranded Reliance Naval and Engineering Ltd to Swan Defence and Heavy Industries, with a goal to become one of the top 5 companies in heavy fabrication in naval and defence.
RIL is looking to utilise the 138 acres of land under Nuayaan Shipyard for hydrogen electrolyser manufacturing, brine preparation, storage, and engineering fabrication.