 "RIL subsidiary picks up majority stake in NowFloats for Rs 142 crore")
Reliance Industries Ltd (RIL) on Thursday said its subsidiary has picked up 85 per cent stake in NowFloats Technologies for a cash consideration of Rs 141.63 crore.
The stake purchase is aimed at strengthening the group's digital and new commerce initiatives.
"Reliance Strategic Business Ventures Ltd (RSBVL), a wholly-owned subsidiary of RIL, has acquired equity shares of NowFloats Technologies for a cash consideration of Rs 141,63,78,822. The said investment represents 85 per cent holding in the equity share capital of NowFloats," RIL said in a BSE filing.
RSBVL proposes to make a further investment of up to Rs 75 crore, subject to achieving agreed milestones, and is expected to be completed by December 2020, it added.
Post the additional investment, the shareholding of RSBVL in NowFloats will increase to 89.66 per cent.
"The investment will further enable the group's digital and new commerce initiatives," the filing said.
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Set up in May 2012, NowFloats offers SaaS (software as a solution) solutions to small and medium enterprises that enable them to get a digital presence. Its solutions include local content discovery platform, online business management suite, website promotion and marketing solutions.
An early stage company, NowFloats had a turnover of Rs 32.56 crore in 2018-19.