Shares of Anil Ambani’s Reliance Infrastructure Ltd (RIIL) surged more than 12%, hitting a new 52-week high of Rs 320.40 on the NSE. This sharp rise came after the company’s board approved a significant fundraising initiative.
Board Approves Rs 3,000 Crore QIP
In a separate move, the board also approved plans to seek shareholder approval for raising up to Rs 3,000 crore via a Qualified Institutional Placement (QIP). The proceeds from this QIP will be used to expand the company’s business operations, either directly or through investments in subsidiaries and joint ventures. It will also help meet long-term working capital needs and general corporate purposes.
Board Approves Rs 3,014.4 Crore Fundraising via Preferential Issue
The board gave the green light to raise Rs 3,014.4 crore through a preferential issue of up to 12.56 crore equity shares at Rs 240 per share.
The preferential issue will be offered to the promoter group entity Risee Infinity Private Limited and non-promoter entities Florintree Innovation LLP and Fortune Financial & Equities Services Private Limited.
Promoter and Key Investors to Participate
Former Blackstone executive Mathew Cyriac, through Florintree Innovation, and equity investor Nimish Shah, via Fortune Financial & Equities Services, will invest Rs 1,200 crore for a minority stake in the company.
Anil Ambani’s Risee Infinity, which currently holds a 16% stake in Reliance Infrastructure, will contribute the remaining Rs 1,814 crore, further enhancing the promoter’s equity stake.
Significant Debt Reduction and Improved Financials
Reliance Infrastructure has made strides in reducing its standalone external debt, bringing it down from Rs 3,831 crore to Rs 475 crore.
This has strengthened the company’s net worth, which currently stands at around Rs 9,041 crore. With the proposed fundraising, the company’s net worth is expected to rise from Rs 9,000 crore to Rs 12,000 crore, providing a significant boost to its financial health.
Reliance Infra Share Performance in Last One Year
Reliance Infrastructure shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 31.51% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 25.78%, indicating a strong upward trend.
Year-to-date, Reliance Infrastructure shares have surged by 80.53%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 49.47% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
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