Anil Ambani’s Reliance Infrastructure to Raise ₹6,000 Crore via Share Sales After Settling Disputes – Investors Eye Growth in Power & EPC Sectors

Reliance Infrastructure Ltd, led by Anil Ambani, has announced plans to raise up to ₹6,014 crore by selling shares and convertible warrants. This decision came a day after the company resolved its legal disputes with the Adani Group over power distribution and a loan issue with CFM Asset Reconstruction.

Details of Fundraising Plan

In a statement released after a board meeting, Reliance Infrastructure shared that it will raise ₹3,014 crore by issuing up to 125.6 million equity shares or convertible warrants at ₹240 per share through a preferential issue.

Positive Market Response

On Wednesday, following the news of the company’s settlement and claims of being debt-free, Reliance Infrastructure’s stock saw a positive response, closing at ₹284.75 per share on the BSE.

Additional Fundraising via QIP

Additionally, the company’s board approved raising another ₹3,000 crore through a qualified institutional placement (QIP). This will require shareholder approval.

Company’s Core Operations

Reliance Infrastructure primarily operates in power distribution in Delhi and provides engineering, procurement, and construction (EPC) services. It also has interests in the defense sector, Metro services, toll roads, and airport projects.

Use of Funds

The money raised from the preferential issue will be used to expand business operations, either directly or by investing in subsidiaries and joint ventures. It may also be used for the company’s long-term working capital needs.

Shares to Be Allotted to Promoter Group

The shares from the preferential issue will be given to a promoter group company, Risee Infinity Pvt. Ltd., along with investors like Florintree Innovation LLP and Fortune Financial & Equities Services Pvt. Ltd. This move will increase the promoter’s holding in Reliance Infrastructure.

Boost to Net Worth

The company also stated that the preferential issue will boost its net worth from ₹9,000 crore to over ₹12,000 crore. With near-zero debt, this additional capital will help Reliance Infrastructure enter high-growth sectors and support the government’s “Make In India” and “Viksit Bharat” initiatives.

Reliance Power’s Loan Settlement

On Wednesday, Reliance Infrastructure’s subsidiary, Reliance Power Ltd, settled a loan obligation of ₹3,872 crore as a corporate guarantor for the debt of its former subsidiary, Vidarbha Industries Power, which owns a 600MW power plant in Nagpur that the Adani Group is interested in acquiring.