Reliance Industries Limited’s (RIL) wholly-owned subsidiary Reliance Strategic Business Ventures Limited (RSBVL) has invested Rs 20 crores in equity shares of Neolync Solutions Private Limited. RIL is further expected to invest up to Rs 40 crore subject to Neolync achieving agreed milestones. The further investment will be completed by March 2023. RIL’s total investment will translate into 40% of equity share capital in Neolync on a fully paid-up and diluted basis.
Neolync Solutions is engaged in India-based manufacturing of electronic products such as mobile phones, telecom products, and computing devices, etc. The company was incorporated in India on 14th October 2019 being an early-stage company.
“The aforesaid investment is part of group’s overall 5G initiatives and commitment to ‘Government of India’s ‘Made in India’ initiatives for fostering indigenous manufacturing especially in next-gen 5G technologies,” said Reliance Industries Limited in a Media Release.
Neolync registered a net loss of Rs 1.03 crore for FY2021 with a net income of Rs 3.26 crore and a net loss of Rs 2.39 crore for the period October 2019 to March 2020. RIL will not need any government or regulatory approvals for the said investment as the same doesn’t fall within related party transactions.
