Reliance Infrastructure announced that the Board of Directors approved a preferential offer of equity shares totalling up to ₹3,014.4 Crore. This includes up to 12.56 Crore shares or convertible warrants at an issue price of ₹240 per share.
The company will launch a Qualified Institutional Placement (QIP) to raise ₹3,000 Crore.
The preferential issuance will benefit Risee Infinity Private Limited, a promoter group firm, as well as other investors such as Florintree Innovation LLP and Fortune Financial & Equities Services Private Limited. The move is likely to increase the promoters’ equity position in the company, according to a statement filed with the stock exchange.
The share issuance follows the company’s announcement on September 19, 2024, that it would explore a potential preferential share issuance to raise new funds. The notice did not specify the amount to be raised.
Reliance Infra stated that the proceeds of the preferred offer will be used to expand business activities, including investments in subsidiaries and joint ventures, as well as to fulfil long-term working capital needs and general corporate objectives.
The business expects the preferred issuance to increase its net worth from over ₹9,000 Crore to over ₹12,000 Crore. A postal ballot notification will be sent to shareholders to request support for these projects.
Reliance Infrastructure previously raised ₹550 Crore in a similar preferential sale in July 2021. At that time, promoters invested ₹400 Crore, while Värde Capital Partners contributed ₹150 Crore.
At around closing, Reliance Infra was trading 10.92% higher at ₹316, against the previous close of ₹284.89 on NSE. The counter touched an intraday high and low of ₹327.70, and ₹281.81, respectively.
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