Reliance Industries Limited (RIL), led by Mukesh Ambani, has made a strategic move in Maharashtra’s industrial real estate sector by acquiring a 74% equity stake in Navi Mumbai IIA Private Limited (NMIIA). This acquisition, valued at ₹1,628.03 crore, was finalized on December 12, 2024. NMIIA, which has 5,286 acres of land in a highly strategic location near key infrastructure projects such as the Mumbai Trans Harbour Link (MTHL) and the upcoming Navi Mumbai International Airport, holds immense potential for industrial, logistics, and commercial development.
The deal reflects RIL’s broader strategy of expanding its footprint in the industrial and logistics sectors, creating an economic hub in the region.
Deal Highlights
Mukesh Ambani-led Reliance Industries Limited (RIL) has made a significant entry in Maharashtra’s industrial real estate market by acquiring a 74% equity share in Navi Mumbai IIA Private Limited (NMIIA). The deal, which was closed on December 12, 2024, had a cost of ₹1,628.03 crore, placing the valuation of NMIIA at ₹2,200 crore. The balance 26% equity remains with CIDCO. The deal saw the purchase of 57.13 crore shares at ₹28.50 per share. It is not a related-party transaction with no previous role of RIL’s promoters or group firms in NMIIA.
RIL’s board approved the acquisition on 11 December, 2024, with CIDCO opting to waive its right of first refusal. On payment, NMIIA became subsidiary to RIL. The valuation of ₹2,200 crore for 5,286 acres of land has raised eyebrows, considering the region’s growth prospect and current market rates. RIL made clear that the shares were purchased from Dronagiri Infrastructure Pvt Ltd (DIPL), being a 99.97% subsidiary of Urban Infrastructure Holdings Pvt Ltd (UIHPL), while CIDCO held on to its 26% stake.
What is Navi Mumbai IIA?
NMIIA Pvt Ltd was incorporated on 15th June 2004 with the aim of developing an Integrated Industrial Area (IIA) in Maharashtra. Notified as a Special Economic Zone (SEZ) in 2006, it was converted to an IIA in 2018 and was notified as a Special Planning Authority as per the MRTP Act. Its land bank of 5,286 acres in Dronagiri, Ulwe, and Kalamboli is situated strategically close to major infrastructure developments like the Mumbai Trans Harbour Link (MTHL), Jawaharlal Nehru Port Trust (JNPT), and the proposed Navi Mumbai International Airport.
Strategic Location Advantage
NMIIA’s landholding is positioned advantageously close to the MTHL, Navi Mumbai International Airport, JNPT, and Mumbai Pune Expressway, presenting huge industrial as well as commercial opportunities. NMIIA posted a turnover of ₹34.89 crore in FY 2023-24, a growth of 6% on a year on year basis. The company has already reached financial closure, which means that funding issues will not limit future growth.
Strategic Intent Why is Reliance Doing This?
The deal fits into RIL’s overall strategy to consolidate its position in the industrial and logistics segments, particularly in the backdrop of growing infrastructure development and changing global supply chains in India. RIL, already having a presence in warehousing and logistics, intends to convert the land into a global economic hub with logistics parks, data centers, and commercial office space.
RIL's Industrial Township Plans
RIL will create a world-class industrial township on the NMIIA site, taking advantage of its closeness to MTHL and Navi Mumbai Airport. The shift from SEZ to IIA status guarantees increased flexibility for various sectors, especially digital services and logistics. The project is expected to bring major industrial investment, increase employment and economic growth in the area.
Structure of the Deal
The majority stake in NMIIA was held by DIPL, owned almost entirely by UIHPL. UIHPL’s shareholders included Reliance Group (33%), Jai Corp (32%), and SKIL Infrastructure (35%). RIL acquired the 74% stake in NMIIA from UIHPL through DIPL, while CIDCO maintained its 26% stake. Following the transaction, UIHPL plans to distribute ₹1,492.50 crore to its shareholders via capital reduction. The deal was structured to avoid classification as a related-party transaction.
Aspect | Details |
Acquirer | Reliance Industries Limited (RIL) |
Target Company | Navi Mumbai IIA Private Limited (NMIIA) |
Transaction Date | December 12, 2024 |
Acquisition Cost | ₹1,628.03 crore |
Valuation of NMIIA | ₹2,200 crore |
Stake Acquired by RIL | 74% |
Stake Retained by CIDCO | 26% |
Land Bank | 5,286 acres in Dronagiri, Ulwe, and Kalamboli |
Strategic Location Advantages | Close to MTHL, Navi Mumbai International Airport, JNPT, Mumbai-Pune Expressway |
Turnover (FY 2023-24) | ₹34.89 crore (6% YoY growth) |
Deal Structure | Purchased through Dronagiri Infrastructure Pvt Ltd (DIPL), a subsidiary of Urban Infrastructure Holdings Pvt Ltd (UIHPL) |
Funding & Financial Details | Previous investments of ₹3,100 crore in equity and ₹6,038 crore in refundable deposits from Reliance group subsidiary |
Public & Media Response | Criticism on land valuation, doubts on transparency, and potential related-party transaction concerns |
RIL’s Future Plans | Transform land into a world-class industrial township, focusing on logistics, data centers, and commercial spaces |
Location Growth Potential | Expected to grow in value with MTHL and Navi Mumbai Airport opening by 2025-26 |
Funding & Financial Engineering
Historically, NMIIA has already received ₹3,100 crore in equity and ₹6,038 crore in refundable deposits from a Reliance group subsidiary. RIL had earlier extended ₹6,162 crore to Reliance 4IR Realty that invested in SPVs with NMIIA land. While this acquisition technically is a non related party transaction, UIHPL’s earlier shareholding structure with Reliance Group raised questions over indirect control. However, Care Ratings again supported a AAA rating on the deposit structure, attributing low future CAPEX requirements and location benefits.
Historical Context
In February 2018, RIL entered into an MoU with the Maharashtra government to create a Global Economic Hub on this land, with a focus on services and digital infrastructure. In June 2024, RIL subsidiaries registered lease deeds for 3,750 acres, making an investment of ₹13,400 crore over 43 years. This equity purchase reinforces RIL’s operational control over the land and its development rights.
Controversy Over Land Valuation
Critics contend that the ₹2,200 crore valuation approximately ₹43 lakh per acre is grossly undervalued. Market estimates for industrial land in Navi Mumbai are between ₹10–15 crore per acre. Some analysts term the pricing as a “98% discount.” RIL insists that the valuation takes into account land use restrictions, development complexities, and conversion costs. Care Ratings also points out that no significant additional investments are needed, and huge upside potential is available in the value of the land.
Market Response & Analyst Views
The share price of RIL went up by 1% on December 13, 2024, closing at ₹1,274.45 after the announcement. The market capitalization of the company rose to ₹17.23 lakh crore. Analysts at Motilal Oswal and others estimate a 26% rally, targeting the stock at ₹1,550. RIL will come out with a development plan in cooperation with the government of Maharashtra, which will reassure investors.
The acquisition of a majority stake in NMIIA marks a significant step in Reliance Industries’ efforts to develop a global economic hub in Maharashtra, leveraging strategic land for industrial, logistics, and commercial ventures. While the land valuation has raised some eyebrows, RIL’s plans for the development of the site hold promise for substantial growth, both economically and in terms of land value. Public skepticism about the deal’s valuation and potential indirect related-party transactions may continue to surface, but RIL’s successful track record suggests that the vision for NMIIA could transform it into a key industrial center in the region.
FAQ's
Frequently Asked Questions
What is Navi Mumbai IIA Private Limited (NMIIA)?
NMIIA is a company set up to develop an Integrated Industrial Area (IIA) in Maharashtra. It was incorporated in 2004 and has land holdings across Dronagiri, Ulwe, and Kalamboli. Initially notified as a Special Economic Zone (SEZ) in 2006, it was later converted to an IIA in 2018
How much did Reliance Industries invest in NMIIA?
Reliance Industries acquired a 74% stake in NMIIA for ₹1,628.03 crore, placing the company’s valuation at ₹2,200 crore. They purchased 57.13 crore shares at ₹28.50 per share.
Who owns the remaining 26% of NMIIA?
The remaining 26% of NMIIA is owned by CIDCO (City and Industrial Development Corporation of Maharashtra Limited).