Reliance Industrial and Investments Holding Limited, a wholly-owned subsidiary of Reliance Industries, has written off 90% of its investment of Rs 107 crore in Deccan 360, an air and cargo service, during the year, the company said in a release.
Deccan 360 was launched by low-cost aviation pioneer G R Gopinath.
An amount of Rs 51 crore, net of losses recognised in earlier years, were recognised in the Q4 balance sheet.
Deccan 360 was launched in May 2009 by raising Rs 115 crore of equity investment from Reliance Industries in early 2008 with a commitment to invest further as operations expand.
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Capt Gopinath to sell Deccan 360
With operations of Deccan 360 not going according to plans, RIL had later stopped investments and was understood to have expressed willingness to exit or pare down its stake.
Ever since May 2011, Capt Gopinath has been trying in vain to raise resources from various private equity funds and other global players to raise fresh investment through companies which would buyout RIL’s stake and invest to take the operations further.
The search led him to the large corporate house and talks are understood to have progressed well.
Bankers had then told Business Standard that it was possible that Mukesh Ambani might have to write down this investment over a period of time, if the transaction happened.
RIL's quarterly results today mirrored expectations, with the company owning up to up to 90% write-off of its investment in Deccan 360.