RIL –Buy- Angel Securities
Reliance Industries Limited (RIL) to ink a deal with DE Shaw to launch a US $700-800 million infra fund After telecommunications, Mukesh Ambani is getting into another of his brother’s territories— financial services. RIL is close to inking a deal with global hedge fund DE Shaw to launch a US $700–$800 million infrastructure fund.
Apart from a PE fund, the two players are also looking at other areas such as carbon trading. No financial terms of the tie-up were available, but it is said that officials from DE Shaw’s global headquarters met Mukesh Ambani last week to work out the details. Interestingly, Mukesh Ambani is said to be on the board of DE Shaw India.
Recently, Mukesh Ambani and his younger brother Anil Ambani scrapped a pact in May 2010 that had earlier prevented them from entering each other’s businesses. As a result, sectors such as telecom, power and financial services were open to Mukesh Ambani. We believe this is a step further towards exploring newer avenues to deploy surplus cash. We maintain BUY on RIL with a Target Price of Rs1,260.
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