RIL, DE Shaw to jointly float $800-million infrastructure fund

Mukesh Ambani-led Reliance Industries Ltd (RIL) is in the process of signing an agreement with global hedge fund D E Shaw for setting up a $700-800 million infrastructure fund, reports quoting sources said.

Fresh from its deal with rival Reliance Dhirubhai Ambani Group to scrap a non-compete clause in their family business agreement, the Mukesh Ambani group is also free to enter other areas like power.

Reports said officials from DE Shaw's global headquarters met Mukesh Ambani last week to work out the details of the alliance. Financial terms of the alliance were, however, not available.

The Mukesh Ambani group has already entered the telecom service with the acquisition of a 95 per cent stake in Infotel Broadband Services for Rs4,800 crore ($1billion), after the latter emerged as the only operator to secure spectrum in all 22 zones.

Reports, meanwhile, said the Mukesh Ambani group was earlier in talks to buy a significant stake in Nimesh Kampani's JM Financial Asset Management, which oversees $1.8 billion in assets.

The Anil Dhirubhai Ambani Group is into almost all areas of financial services, including, mutual funds, insurance, broking, consumer and home financing and venture capital, all under Reliance Capital.