LAST UPDATED: March 1, 2021, 12:10 p.m.
New Delhi (Anish Yande): Reliance Industries has increased its existing stake in US-based transport technology firm SkyTran Inc. The subsidiary of the Mukesh Ambani-led business conglomerate, Reliance Strategic Business Ventures Limited has upped its stake in SkyTran to 54.46 percent, according to a statement issued on Sunday.
Reliance Industries acquires majority stake in SkyTran:
The subsidiary of Reliance Industries has stated that it acquired an additional equity stake in the venture-funded technology firm. Reliance Strategic Business Ventures acquired a stake for a consideration of $26.76 million, leading to an increase in its stake to 54.46 percent.
Reliance Strategic Business Ventures previously had a stake of 12.7 percent in SkyTran in October 2018. The firm increased its stake to 17.37 percent and consequently to 26.31 percent in April 2020. Through its latest investment of $26.76 million, the venture arm of Reliance upped its stake to a majority stake of 54.46 percent.
The US-based company is also supported by global venture capital investors such as Innovation Endeavors.
SkyTran develops passenger pods with magnetic levitation:
SkyTran was founded in 2011 and develops magnetic levitation & propulsion technology for transportation. The firm aims to resolve the issues of traffic congestion across the world. According to the proposals of the company, the SkyTran system would consist of several passenger pods controlled by computers.
The passenger pods would be controlled by the passive magnetic levitation tech which has been patented by the company. The firm would also utilize tools from IT, and Telecom industries for transportation. SkyTran would be focused on travel which is fast and not harmful to the environment, according to the proposals.
SkyTran has partnered with the US space agency NASA and the Israel Aerospace Industries in developing its transport system.
Mukesh Ambani, the chairman and managing director of Reliance Industries said in a statement, that Reliance’s majority stake in SkyTran is reflective of the company’s commitment to invest in building futuristic technologies.
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