Reliance Ethane Holding invests Rs 853 crore in subsidiaries
Reliance Ethane Holding Pte Ltd. (REHPL) a wholly owned subsidiary of oil-to-telecom conglomerate Reliance Industries has invested Rs 284 crore each in three of its subsidiaries--Ethane Coral LLC, Ethane Diamond LLC, and Ethane Jade LLC-- aggregating to Rs 852.8 crore ($102.90 million).
Ethane LLCs have entered into ship-building contracts (SBCs) to purchase Very Large Ethane Carriers (VLECs) and each Ethane LLC will own a VLEC. VLECs are being acquired for the transportation of Ethane. The investment is made to enable Ethane LLCs to make part payment towards the cost of construction of three VLECs.
«Reliance Ethane Holding Pte Ltd. (REHPL), a wholly-owned subsidiary of the Company, has informed that it has today invested in 34,300,000 ordinary shares of face value of $1 each for cash at par, in each of its three wholly owned subsidiaries,» RIL said in a regulatory filing on Wednesday.
Ethane LLCs are limited liability companies incorporated on December 4, 2023, in the Republic of the Marshall Islands, to own VLECs and are yet to commence commercial operations.
The investment falls within related party transactions, being a transaction between REHPL (a wholly owned subsidiary of the Company) and its wholly owned subsidiaries, and is on an arm’s length basis. «The Promoter, Promoter Group, and other group companies are not interested in the above investment,» RIL said, adding that no governmental or regulatory approvals were required for the above investment, the company added.
RIL's scrip was trading at Rs
