Reliance Infrastructure on Thursday said its board has approved raising of Rs 3,014 crore through a preferential issue of shares or warrants to promoters and investors. The company has also sought shareholders’ nod to raise up to Rs 3,000 crore by making a qualified institutional placement of shares.
The company said board has approved an issuance of 125 million equity shares or warrants convertible into equivalent number of equity shares at a price of Rs 240 per share/warrant to promoter entities and investors. “The issue proceeds would be utilised for expansion of business operations directly and/or through investment in subsidiaries and joint ventures Including meeting the long-term working capital requirements and for general corporate purposes, “ the company said in an exchange filing.
The company said the preferential issue will be be made to Risee Infinity, a promoter group company, and to other investors Florintree Innovation LLP and Fortune Financial & Equities Services. The preferential issue will increase the promoters’ equity stake, the company said.
The price for the preferential issue was arrived at in accordance with the SEBI’s issue of capital and disclosure requirements (ICDR) norms. The company said the preferential issue will enhance the company’s networth from over Rs 9,000 crore to over Rs 12,000 crore. “The enhanced capital will support the company’s participation in high growth sectors to aid the government’s vision of ‘Make In India’ and ‘Viksit Bharat’,” it said.
On Wednesday, the company said that Invent Assets Securitisation and Reconstruction, a lender to the company, has assigned certain pledged securities to recover its dues. As a result, Invent ARC’s entire outstanding dues is reduced to Zero. It also said it has cleared its outstanding dues to Life Insurance Corporation of India, Edelweiss ARC, ICICI Bank, Union Bank and other lenders. As a result, the company’s standalone debt is down to Rs 475 crore. It had a consolidated net debt of Rs 9,741 crore as on March 2024. The company’s shares closed flat at Rs 282.80 on Thursday.
Reliance Infrastructure is engaged in the business of providing EPC services, power distribution in Delhi and also engaged in implementation, operation and maintenance of several projects in defence sector and infrastructural areas like metro, toll roads and airports through its special purpose vehicles.