Reliance Infrastructure Board approves Preferential Issue of Equity Shares of INR 3,000 crore

The Board of Directors of Reliance Infrastructure Limited (Reliance Infrastructure) at its meeting held today has approved raising of INR 3,014 crore by preferential issue of upto 12.56 crore equity shares and /or warrants convertible into equivalent number of equity shares of the Company for cash, at a price of INR 240 per Share/warrant arrived at in accordance with the SEBI ICDR Regulations.

The Preferential Issue shall be made to Risee Infinity Private Limited, a promoter group company and to other investors namely Florintree Innovation LLP and Fortune Financial & Equities Services Private Limited. The Preferential Issue will result in enhancing the Promoters equity stake.

The Preferential Issue shall be made in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and other applicable law.

The Board also approved seeking enabling authorisation from the Shareholders to raise upto INR 3,000 crore by making a Qualified Institutional Placement (QIP).

The Preferential 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.

Preferential Issue will enhance the Company's networth from over INR 9,000 crore to over INR 12,000 crore. The Company has near ZERO debt. 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'.

The Board also approved issuance of postal ballot to seek shareholders' approval for the preferential Issue and QIP.

The above shall be subject to all requisite permissions, sanctions and approvals as may be necessary.

Shares of Reliance Infrastructure Limited was last trading in BSE at Rs. 284.75 as compared to the previous close of Rs. 282.75. The total number of shares traded during the day was 4433549 in over 72921 trades.

The stock hit an intraday high of Rs. 304.00 and intraday low of 272.25. The net turnover during the day was Rs. 1275317305.00.

Source : Equity Bulls

Keywords

RelianceInfrastructure INE036A01016 FundRaising PreferentialIssue EquityShares ConvertibleWarrants QIP