The billionaire businessman, who made headlines with his bankruptcy declaration years ago, is now setting his sights on the real estate market with a new entity: Reliance Jai Properties Private Limited (RJPPL). But what’s behind the name "Jai" and why is the real estate sector suddenly under his radar?
The emergence of Reliance Jai Properties has stirred significant interest among market watchers. The name "Jai" is speculated to be a tribute to Ambani’s sons, adding a personal touch to the new venture. This bold initiative comes at a time when Anil Ambani, once declared bankrupt in a foreign court, is making headlines for a surprising revival. With the Hinduja Group's IIHL settling its first instalment with Reliance Capital, Ambani's financial recovery seems to be on track. The real estate sector entry is seen as a strategic play to strengthen his financial foothold.
Reliance Infrastructure's recent share performance has been less than stellar. The stock, trading at Rs 218.55, has seen fluctuations, with a 52-week high of Rs 308 and a low of Rs 144.45. Despite this volatility, the establishment of RJPPL under Reliance Energy Limited, a subsidiary, marks a significant pivot towards the booming real estate market.
Officially merged on August 12, 2024, Reliance Jai Properties has started with a capital base involving 10,000 shares of face value. The venture's alignment with Pradhan Mantri Awas Yojana (PMAY-U) 2.0, aimed at providing affordable housing, indicates a strategic move to tap into the government’s initiative for urban development.
However, the new company's launch hasn't been without its critics. Some experts are wary of the potential impact on Reliance shares, which have recently declined despite the new venture. Investors are closely watching the implications of this strategic shift. Anil Ambani’s family holds a minimal stake of 0.17% in the new company, while RISEE Infinity Private Limited leads with a 16% stake, and promoters collectively hold 16.50%.
As Reliance Jai Properties sets its sights on reshaping the real estate landscape, the business world remains on edge, questioning whether this bold move will cement Ambani’s recovery or reveal deeper strategic currents.
