Jai Corp Ltd faced a sharp sell-off in the markets as its shares plunged 15% after the company disclosed details of Maharashtra’s largest industrial land sale to Reliance Industries. The land, spanning 5,286 acres, was sold for ₹2,200 crore, drawing mixed reactions from investors. While the deal is seen as a strategic acquisition for Reliance, questions about the valuation and its implications for Jai Corp have spooked the market. Below are the key highlights of the transaction and its impact.
- Land Transaction Details: Reliance Industries acquired Maharashtra’s largest industrial land parcel of 5,286 acres at a valuation of ₹2,200 crore. This transaction has drawn attention due to its strategic importance and valuation.
- Jai Corp’s Stake and Capital Reduction Proposal:
- Jai Corp Ltd, promoted by Anand Jain, informed exchanges that Urban Infrastructure Holdings Pvt. Ltd. (UIHPL), where Jai Corp holds a 32% stake, is convening an extraordinary general meeting to approve a capital reduction proposal.
- A subsidiary of UIHPL, Dronagiri Infrastructure Pvt. Ltd. (DIPL), sold a 74% stake in Navi Mumbai IIA Pvt. Ltd. to Reliance Industries for ₹1,628.03 crore.
- PNGRB Waiver and Details:
- Reliance secured the waiver of the first right of refusal from the City and Industrial Development Corporation of Maharashtra Ltd (CIDCO) to facilitate this acquisition.
- Navi Mumbai IIA Pvt. Ltd. (NMIIA), initially established to develop a Special Economic Zone (SEZ), was converted into an Integrated Industrial Area (IIA) under the Maharashtra Regional and Town Planning Act.
- Strategic Location: The land is strategically located near key infrastructure projects such as the Mumbai Trans Harbour Link, Navi Mumbai Airport, and Jawaharlal Nehru Port, increasing its potential value.
Following the announcement, Jai Corp’s shares tumbled 15% on January 2, 2025, to ₹264.35, marking a steep decline from the previous close of ₹310.45.
