A day after announcing a reduction in Reliance Infrastructure Ltd debt, Anil Ambani-led company said its board of directors has approved raising of Rs 3,014 crore by preferential issue of up to 12.56 crore equity shares.
In a regulatory filing, the company said the preferential issue shall be made to Risee Infinity Pvt Ltd, a promoter group company and to other investors, namely Florintree Innovation LLP and Fortune Financial & Equities Services Pvt Ltd.
"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 company said the preferential issue will enhance the company's net worth from over Rs 9,000 crore to over Rs 12,000 crore.
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"The board also approved seeking enabling authorisation from the shareholders to raise up to INR 3,000 crore by making a qualified institutional placement," Reliance Infrastructure said. According to the filing, the preferential issue proceeds will be used 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.
Earlier, Reliance Infra said its standalone external debt has reduced from Rs 3,831 crore to Rs 475 crore. The share price of Reliance Infra saw a 20 per cent increase on Wednesday and closed at R 282.73 with a Rs 47.12 hike. The market cap of the company stands at Rs 11283 crore, as of September 19.
(With inputs from PTI)
