Anil Ambani's Reliance Infrastructure to get equity infusion of Rs 1,100 cr from promoters
Mumbai: Anil Ambani's Reliance Infrastructure is set to receive an equity infusion of Rs 1,100 crore from its promoters and Rs 1,910 crore from two investment firms based in Mumbai, according to a stock exchange filing on Friday.
On Thursday, the company’s board approved a plan to raise over Rs 6,000 crore, with Rs 3,014 crore to be raised via preferential allotment of equity shares and Rs 3,000 crore through a qualified institutional placement (QIP).
In the first phase, the company will initiate a Rs 3,014 crore preferential placement, issuing 125.6 million equity shares or convertible warrants at Rs 240 per share.
Of this, Rs 1,104 crore will come from the promoters through Risee Infinity Private Limited, which will subscribe to 46 million shares.
Fortune Financial & Equities Services and Florintree Innovations LLP, both based in Mumbai, will participate in the preferential issue.
Fortune Financial will invest Rs 1,058 crore by subscribing to 44.1 million shares, while Florintree Innovations will invest Rs 852 crore for 35.5 million shares.
The promoters hold a 21.34% stake in Reliance Infrastructure.
This preferential issue will increase the company's net worth from Rs 9,000 crore to Rs 12,000 crore, while bringing its debt to near zero.
The company is seeking shareholder approval through a postal ballot.
Reliance Infra reduced 87% of its debt, bringing it down to Rs 475 crore.
The proceeds from the preferential issue will be used to expand its business operations, either directly or through investments in subsidiaries and joint ventures, as well as for long-term working capital needs and general corporate purposes.
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