Infotel Broadband Services, an arm of Reliance Industries Ltd (RIL), has picked up a 38.5 per cent stake in digital learning solutions firm Extramarks Education for an undisclosed amount.
The stake was acquired through an affiliate company, Reliance Strategic Investments, RIL said in a statement. “The investment by Infotel will enable Extramarks pursue its aggressive growth plans in further developing services and wider market penetration. Extramarks’ digital distribution model will provide invaluable services to the student community across age groups, including education support and study help at affordable prices,” the statement said. According to reports, there will be no dilution of equity and RIL will infuse fresh capital.
The acquisition of stake in Extramarks is expected to strengthen Infotel’s content portfolio and help grow its business, especially in the education sector, which is focusing on delivering contents using information and communication technologies.
Extramarks chairman Atul Kulshreshta said, “The relationship with Reliance is the start of an exciting phase for Extramarks. Over the last two years, we have progressed on our journey of revolutionising the domestic education sector through technology-enabled smart solutions and active participation in infrastructure development.”
The alliance with RIL would accelerate the mass penetration of Extramarks’ offerings, benefitting thousands of Indians who would have the advantage of quality education and study help at their doorsteps, he said.
RIL had acquired a 95 per cent stake in Infotel for Rs 4,800 crore last year, after the latter won broadband spectrum in all 22 circles by paying Rs 12,848 crore. The company is expected to launch its broadband wireless access services by the end of this year or early next year.