Reliance Infrastructure (Rel Infra), the largest investor in Reliance Power, is not planning any further investment in the company.
Rel Infra CEO Lalit Jalan told FE that the Rs 9,000 crore cash reserves of his company will be used elsewhere. ?If you look at the shelf of projects, I would like to use the cash for my projects only?.
He also said he did not foresee any need for such investments at this stage. According to Jalan, the fall out of Friday?s Supreme Court verdict will be minimal on his company and would not entail any change in its business plan. The company?s business model of developing infra projects was sound and would not be affected by the court decision he said. Rel Infra is part of the business empire of Anil Ambani.
?Rel Infra has 24 projects on hand, none of which are gas based,? he said. These include the Airport-city metro project in Delhi and Mumbai?s first metro corridor. The total outlay for the projects is about Rs 37,000 crore. Of these, Jalan said 10 should come on revenue stream in the current fiscal. But he refused to say how much the projects would add to the total turnover of the company. Rel Infra?s shares closed at Rs 1,062, a rise of 8.5% at the NSE on Monday. The company is the country?s largest private sector enterprise in power utility, with presence in roads, urban infrastructure and even SEZ.
Jalan said, as of now, the company is not planning to raise additional capital from the markets but it expects the conversion of the balance of the warrants by the promoters of about Rs 2,000 crore by September to sail through. Incidentally in March this year, Anil Ambani pushed in an additional of equity of Rs 1,820 crore that raised his stake to over 42% in the company.
