Reliance Infrastructure announced on Sunday that its shareholders have approved a plan to raise ₹6,000 crore through the preferential issue of shares and the qualified institutional placement (QIP) route.
In a regulatory filing, the company confirmed that both fundraising proposals were approved, with over 98% of shareholders voting in favor through a postal ballot.
The company’s board had approved this ₹6,000-crore fundraising plan on September 19.
Fundraising Details:
In the first phase of the plan, Reliance Infrastructure will raise ₹3,014 crore by issuing 12.56 crore equity shares or convertible warrants at ₹240 per share through a preferential placement.
Out of this amount, the company’s promoters, through Risee Infinity Private Ltd, will invest ₹1,104 crore by subscribing to 4.60 crore shares.
Two other investors, Fortune Financial & Equities Services and Florintree Innovations LLP, will also participate. Fortune Financial will invest ₹1,058 crore for 4.41 crore shares, while Florintree Innovations will invest ₹852 crore for 3.55 crore shares.
The company stated that this preferential issue will boost its net worth from over ₹9,000 crore to over ₹12,000 crore, adding that it currently has almost no debt.
Future Plans:
Reliance Infrastructure said the increased capital will help the company enter high-growth sectors. The funds will be used to expand business operations, make investments in subsidiaries and joint ventures, and meet long-term working capital needs, as well as for general corporate purposes.
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