Shareholders have largely backed Reliance Infrastructure’s ambitious fundraising drive, which has edge Rs 6,000 crore. A recent stock market filing showed that more than 98% of shareholders supported the idea in a postal vote.
The fundraising will be two-way. The Reliance Infrastructure board approved the plan on September 19. It seeks to raise Rs 3,000 crore through Qualified Institutional Placement (QIP), Rs 3,014 crore through sale of preferred shares or convertible warrants.
To raise Rs 3,014 crore in the first tranche, Reliance Infrastructure plans to issue 12.56 million equity shares or convertible warrants at Rs 240 per share. The owners of the company will spend Rs 1,104 crore of this amount by buying 4.60 crore shares of their business Risee Infinity Private Ltd.
Mumbai-based Florintree Innovations LLP and Fortune Financial & Equities Services are other notable investors. Nimish Shah’s Fortune Financial will contribute Rs 1,058 crore with 4.41 million shares, while Florintree, led by former Blackstone executive Mathew Cyriac, will spend Rs 852 crore to buy 3.55 million shares.
Reliance Infrastructure’s net value will rise from Rs 9,000 crore to Rs 12,000 crore as a result of the preferred offer, putting the business closer to having almost no debt. The money obtained will be utilized for general company objectives, long-term working capital requirements, joint venture and subsidiary investments, and business expansion.
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