October 13, 2024 02:52 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Ensure safety and security of Hindus: India to Bangladesh amid reports of attack on Durga Puja pandal | Nexus of crime and politics: Mohan Bhagwat on RG Kar rape-murder case | Hindus should be united and strong, being weak is a crime: RSS chief Mohan Bhagwat | Muslim men threatened to break Durga idol storming into pandal in dispute over music, alleges Kolkata puja club | Tamil Nadu derailment: 19 injured in Darbhanga Bagmati Express collision with goods train, 13 coaches jump track
Anil Ambani led Reliance Infrastructure to raise Rs 6,000 cr via share sale
File photo by Sourav Mishra via Wikimedia Commons

Anil Ambani led Reliance Infrastructure to raise Rs 6,000 cr via share sale

| @indiablooms | 20 Sep 2024, 01:07 am

Mumbai: Reliance Infrastructure Ltd, led by Anil Ambani, announced plans to raise up to Rs 6,014 crore through the sale of shares and convertible warrants on Thursday.

This follows the resolution of its arbitration disputes with the Adani Group regarding power distribution and a loan issue with CFM Asset Reconstruction, media reports said.

In a release after a board meeting, Reliance Infrastructure stated it aims to raise Rs 3,014 crore via a preferential issue of up to 125.6 million equity shares or warrants (which can be converted into an equivalent number of equity shares) at Rs 240 per share. The stock reacted positively to the news, closing at Rs 284.75 per share on the BSE.

The company plans to raise up to Rs 3,000 crore through a qualified institutional placement (QIP), for which it will seek shareholder approval soon.

Reliance Infrastructure primarily operates in power distribution in Delhi and provides EPC services. It is also involved in defence projects and manages various infrastructure projects, including metro services, toll roads, and airports through special purpose vehicles.

The proceeds from the proposed preferential issue will be used for expanding business operations, either directly or through investments in subsidiaries and joint ventures. The funds may also address the company's long-term working capital needs.

Shares from the preferential issue will be allocated to a promoter group company, Risee Infinity Pvt. Ltd., along with other investors such as Florintree Innovation LLP and Fortune Financial & Equities Services Pvt. Ltd.

This move is expected to increase the promoter's effective holding in Reliance Infrastructure and boost the company's net worth from Rs 9,000 crore to over Rs 12,000 crore.

"The company has near zero debt. The enhanced capital will support the company’s participation in high-growth sectors to aid the government’s vision of ‘Make In India’ and ‘Viksit Bharat’," the company stated.

On Wednesday, Reliance Infrastructure’s subsidiary, Reliance Power Ltd (RPower), settled a loan obligation of Rs 3,872.04 crore as a corporate guarantor for the debt of its former subsidiary, Vidarbha Industries Power. Vidarbha Industries owns a 600MW thermal power plant in Butibori, Nagpur, which the Adani Group has expressed interest in acquiring.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.