Reliance Infra to Raise ₹6,000 Crore Through QIP, Preferential Allotment

21 Oct 2024 , 12:45 PM

Reliance Infrastructure shareholders approved the company’s plan to raise ₹6,000 Crore through a Preferential Issue and Qualified Institutional Placement (QIP).

Over 98% of votes were cast in favor of the resolutions during a postal ballot. The company’s board had initially approved the plan on 19 September 2024. Of the ₹6,000 Crore, ₹3,014 Crore will be raised through the preferential allotment of shares or convertible warrants, while ₹3,000 Crore will be raised via QIP.

In the first phase, a ₹3,014 Crore preferential issue will offer 12.56 Crore equity shares or convertible warrants at ₹240 per share. Promoters, through Risee Infinity Private Limited, will invest ₹1,104 Crore by subscribing to 4.60 Crore shares.

Mumbai-based Fortune Financial & Equities Services and Florintree Innovations LLP will invest ₹1,058 Crore and ₹852 Crore, respectively, acquiring a total of 7.96 Crore shares.

This preferential issue is expected to boost Reliance Infrastructure’s net worth from ₹9,000 Crore to ₹12,000 Crore and significantly reduce its debt.

The funds will be used to expand business operations, invest in subsidiaries and joint ventures, and meet long-term working capital requirements. Shareholders also approved the appointment of Manjari Kacker as an independent director, enhancing governance standards.