Reliance Infrastructure Ventures into Real Estate: New Subsidiary RJPPL Launched on August 12

On August 12, Reliance Infrastructure Limited revealed the creation of its new real estate subsidiary, Reliance Jai Properties Private Limited (RJPPL), as per the company’s exchange filing. This marks a significant step for Reliance Infrastructure as it broadens its presence in the real estate market.

Stock Performance

Despite the announcement, Reliance Infrastructure’s stock closed down by 1.80% at ₹225.85 on the BSE on August 11. The company’s market capitalization stands at ₹8,946.62 crore, and it reached its 52-week high of ₹308 on April 4, 2024.

About RJPPL

RJPPL is a fully owned subsidiary of Reliance Energy Limited, which itself is under Reliance Infrastructure. Officially incorporated on August 12, 2024, RJPPL was established with an initial authorized and paid-up capital of ₹1,00,000, divided into 10,000 equity shares valued at ₹10 each. The company plans to delve into the real estate industry by acquiring, selling, leasing, and developing properties.

Capitalizing on Real Estate Growth

This move by Reliance Infrastructure aligns with the ongoing growth in India’s real estate sector, fueled by increasing urbanization, higher income levels, and supportive government policies for housing and commercial development. Through RJPPL, Reliance aims to seize these opportunities and enhance its revenue sources.

Government Initiatives and Investments

Under the Pradhan Mantri Awas Yojana (PMAY), the government plans to construct 20 million affordable homes by 2022. By 2023, approximately 11.4 million homes have been sanctioned, with 9.71 million completed or delivered.

Furthermore, the government has committed ₹48,000 crore ($6.5 billion) towards developing 100 smart cities across India. By 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.

Transport Sector

The transport sector also witnesses significant investments, with the largest shares allocated to Roads & Highways, followed by Railways and Urban Public Transport. Government plans include expanding the national highway network to 200,000 kilometers by 2025, increasing the number of airports to 220, operationalizing 23 waterways by 2030, and setting up 35 Multi-Modal Logistics Parks (MMLPs).

The budget for infrastructure-related ministries has increased from ₹3.7 lakh crore in FY23 to ₹5 lakh crore in FY24, offering substantial investment opportunities for the private sector in various transport sectors, as highlighted by Invest India.