September 20, 2024
New Delhi, India
Reliance Infrastructure
Anil Ambani’s flagship firm, Reliance Infrastructure Ltd, is set to receive a substantial equity infusion of Rs 1,100 crore from promoters and an additional Rs 1,910 crore from two Mumbai-based investment firms as part of a Rs 6,000 crore fundraising plan. The company’s board approved the fundraise on Thursday, with Rs 3,014 crore to be raised through a preferential allotment of shares, while the remaining Rs 3,000 crore will come from institutional buyers.
Details of the First Phase Fundraising
- Preferential Placement:
The first phase of the fundraising will see 12.56 crore equity shares or convertible warrants issued at an issue price of Rs 240 per share. This placement will require shareholder approval through a postal ballot. - Promoters’ Contribution:
Promoters, through Risee Infinity Private Limited, will infuse Rs 1,104 crore, subscribing to 4.60 crore shares. - Other Investors:
Two additional investors, Fortune Financial & Equities Services and Florintree Innovations LLP, will also participate:- Fortune Financial, owned by Nimish Shah, will invest Rs 1,058 crore for 4.41 crore shares.
- Florintree Innovations, led by former Blackstone executive Mathew Cyriac, will invest Rs 852 crore for 3.55 crore shares.
Impact of Fundraising
The preferential issues are expected to increase Reliance Infra’s net worth from Rs 9,000 crore to Rs 12,000 crore, nearly eliminating its debt. This capital infusion will be utilized to expand the company’s business operations, invest in subsidiaries and joint ventures, meet long-term working capital requirements, and for general corporate purposes.
Key Dates and Shareholder Approval
- E-voting for the postal ballot will take place from September 20 to October 19.
- The results of the ballot will be announced on October 21.
This equity infusion marks a significant step in Reliance Infrastructure’s strategic efforts to strengthen its balance sheet and drive business growth.
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