The Reliance group has raised its stake in SkyTran — an innovative zero-emission public transport system which is still under development at test beds in California, Tel Aviv and Texas — to 26.31 per cent. The stake buy is being made through its wholly owned subsidiary Reliance Strategic Business Ventures Limited (RSBVL).
In October 2018, Reliance Industrial Investments and Holdings Ltd (RIIHL), an RIL arm, had acquired a 12.7 per cent stake in SkyTran Inc. Pursuant to a composite scheme of arrangement approved by the National Company Law Tribunal, Ahmedabad Bench, the investment in SkyTran by RIIHL was later vested in RSBVL.
RSBVL acquired more shares in SkyTran, which saw its holding rise to 17.37 per cent.
RSBVL later acquired convertible notes in two tranches: the first one on November 29, 2019 and the second one on March 23, 2020, which have been converted into shares of SkyTran Inc on April 27 after certain conditions in the agreement were fulfilled.
The shareholding rose to 26.31 per cent.
Reliance is one of the lead investors in the project along with Innovation Endeavors and Draper Associates. Draper is a global venture capital firm that counts its investment in Skype Communications as one of its successful bets.
SkyTran is developing modern transport modes, including personal rapid transit systems. Its website says the public transport system it is working on has the potential to change the way one commutes and could tackle the intensifying congestion and the effects of increasing dependence on automobiles.
Early 2020, it began construction on its second full-scale test platform and hopes to launch its first commercial pilot soon.
According to SkyTran, the passenger vehicles to be used in this system are extremely lightweight and compact. The track is fabricated and assembled off-site in advance, minimising construction time and disruption to communities.
In December last year, RSBVL had picked up an 85 per cent stake in NowFloats Technologies for a cash consideration of Rs 141.63 crore.
RIL had then said that the stake purchase is aimed at strengthening the group's digital and new commerce initiatives.
Set up in May 2012, NowFloats offers SaaS (software as a solution) to small and medium enterprises that enable them to get a digital presence.
