Anil Ambani ready to SHAKE UP market after board's approval to raise Rs 2,930 crore

Last month, Reliance Infrastructure led by businessman Anil Ambani, announced that it has reduced its debt from Rs 3,831 crore to Rs 475 crore. This was a huge shot in the arm for Ambani, who has been in the news for the past few weeks. Now, Reliance Infra has announced that its board has approved a proposal to raise Rs 2,930 crore by issuing unsecured foreign currency convertible bonds (FCCBs) to VFSI Holdings Pte Limited.

The company, in a regulatory filing, said FCCBs will be unsecured and will have ultra-low cost coupon of 5 per cent per annum with a long maturity of 10 years. "The Board of Directors of Reliance Infrastructure Limited (Reliance Infrastructure) at its meeting held today has approved raising of funds up to USD 350 million (Rs 2,930 crore) to VFSI Holdings Pte Limited, an affiliate of Varde Investment Partners, LP, a leading global alternative investment firm," it added.

The company said the Reliance Infrastructure board also approved the Employees Stock Option Scheme (ESOS) for all employees of the company. "ESOS to provide a grant of up to 2.60 crore equity shares of value of over Rs 850 crore - representing 5 per cent of fully diluted capital," it said, adding that ESOS will unlock the employee earning potential in alignment to the company's performance and growth.

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Reliance Infra operates in the energy sector, handling power distribution in Delhi and energy production. Since reducing its debt by 87 per cent, the company's shares have been on the rise and closed at Rs 331 on Tuesday. The market cap of the company stands at Rs 13140 crore, as of October 1.

(With inputs from PTI)