Reliance Infrastructure launches new real estate subsidiary Reliance Jai Properties with ₹1 lakh initial capital

Reliance Infrastructure Limited on August 12, announced the incorporation of a new subsidiary, Reliance Jai Properties Private Limited (RJPPL), expanding its footprint in the real estate sector, the company announced in an exchange filing.

Reliance Infrastructure share price closed in red on August 11, down 1.80 per cent at ₹225.85, on BSE. The company enjoys a market capitalisation of ₹8,946.62 crore. The company had last hit its 52-week high on April 4, 2024, at ₹308.

The new subsidiary was established as a wholly owned subsidiary of Reliance Energy Limited, which is itself a subsidiary of Reliance Infrastructure. RJPPL was officially incorporated on August 12, 2024, with an authorized and paid-up share capital of ₹1,00,000, divided into 10,000 equity shares at ₹10 each.

Despite being newly formed, RJPPL is expected to focus on the real estate industry, aiming to acquire, sell, lease, and develop various properties.

Reliance's move to ride the wave

This expansion comes at a time when India's real estate sector is experiencing significant growth, driven by urbanization, rising income levels, and government initiatives to boost housing and commercial development. By venturing into this sector, Reliance Infrastructure aims to capitalize on these opportunities and diversify its revenue streams.

Under the Pradhan Mantri Awas Yojana (PMAY), the government aims to build 20 million affordable houses by 2022. As of 2023, approximately 11.4 million houses have been sanctioned, with 9.71 million houses already completed or delivered.

The government has allocated ₹48,000 crore ($6.5 billion) for the development of 100 smart cities across India. Till 2023, over 7,900 projects worth ₹1.93 lakh crore ($26 billion) have been tendered, with more than 4,700 projects worth ₹93,500 crore ($12.6 billion) completed.

Among the infrastructure investments, Roads & Highways receive the largest share, followed by Railways and Urban Public Transport. The government has set ambitious goals for the transport sector, including the development of a 200,000-kilometer national highway network by 2025 and expanding the number of airports to 220. Additionally, there are plans to make 23 waterways operational by 2030 and establish 35 Multi-Modal Logistics Parks (MMLPs). The budget for infrastructure-related ministries has risen from approximately ₹3.7 lakh crore in FY23 to ₹5 lakh crore in FY24, presenting significant investment opportunities for the private sector across various transport areas, as per Invest India.