NEW DELHI :
Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), has acquired 85% stake in NowFloats Technologies Pvt. Ltd. (Nowfloats) for a cash consideration ₹141.64 crore.
According to a notification issued by RIL to the stock exchanges on Thursday, RSBVL plans to invest another Rs75 crore in the acquired entity, subject to achieving agreed milestones. The second round of investment is expected to be completed by December 2020. After the additional investment, RSBVL will hold 89.6% stake in Nowfloats.
At 1044am, shares of RIL traded at Rs1562.85 on the BSE, a tad higher from previous close.
Nowfloats reported a turnover of Rs32.56 crore and net loss of Rs43.24 crore in the financial year ended March 2019. Incorporated in India on May 9, 2012, Nowfloats offers SaaS solutions to Small and Medium Enterprises (SMEs), enabling a digital presence for them. Other solutions include local content discovery platform, online business management suite, website promotion, marketing solutions, and various other offerings for SMEs.
RIL said no governmental or regulatory approvals were required for the said investment, as it does not fall within related party transactions and none of RIL’s “promoters or promoter groups or group companies have any interest in the transaction."