Reliance Infrastructure Ltd. board on Thursday approved raising Rs 3,014 crore by preferential issue of shares to promoter and non-promoter entities to fund business expansion. The company also sought shareholders' nod to raise up to Rs 3,000 crore by making a qualified institutional placement of shares.
The company will issue 12.56 crore equity shares or warrants convertible into an equivalent number of shares at Rs 240 apiece, according to an exchange filing.
The preferential issue will be made to Risee Infinity Pvt., a promoter group entity, which will result in the rise of its stake in Reliance Infrastructure from the current 16.31%.
Further, shares will be offered to Florintree Innovation LLP and Fortune Financial & Equities Services Pvt.
The proceeds would be utilised for expansion of business operations directly or through investment in subsidiaries and joint ventures, including meeting the long-term working capital requirements and for general corporate purposes, the company said.
The preferential issue will enhance Reliance Infrastructure’s net worth from over Rs 9,000 crore to over Rs 12,000 crore, it added.
The integrated power utilities provider said on Wednesday it has completed a one-time settlement with Life Insurance Corp. relating to the issue of debentures worth Rs 600 crore. The firm has also cleared its outstanding dues to Edelweiss Asset Reconstruction Co., ICICI Bank Ltd., Union Bank Ltd., and other lenders, it said.
External debt reduced to Rs 475 crore from Rs 3,831 crore earlier.
The Anil Ambani-founded company specialises in offering engineering and construction services across various sectors, including power, roads, metro rail, and broader infrastructure projects.
Shares of Reliance Infrastructure closed 0.71% higher at Rs 284.75 apiece ahead of the announcement, compared to a 0.3% gain in benchmark BSE Sensex.
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