Promoters to infuse ₹1,100 crore in Reliance Infra

Anil Ambani’s flagship firm, Reliance Infrastructure Ltd is set to receive ₹1,100 crore equity infusion from the promoters and another ₹1,910 crore from two Mumbai-based investment firms, according to a filing by the company.

The board of the company had on Thursday approved ₹6,000 crore fund raise plan, of which ₹3,014 crore was to be raised through preferential allotment of shares and ₹3,000 crore share issue to institutional buyers.

  • Also read: Reliance Infra brings down standalone debt by 87 per cent to ₹475 crore

In the first phase, the company is launching ₹3,014 crore preferential placement under which 12.56 crore equity shares or convertible warrants will be issued at an issue price of ₹240 per share, according to the company’s postal ballot seeking shareholder nod for share issue.

Out of this, ₹1,104 crore will be invested by promoters of Reliance Infrastructure through promoter company Risee Infinity Private Limited. Risee will subscribe to 4.60 crore shares.

The two other investors participating in the preferential issue are Mumbai-based Fortune Financial & Equities Services and Florintree Innovations LLP.

Florintree is owned by former Blackstone executive Mathew Cyriac, while Fortune Financial is owned by Nimish Shah.

Promoters hold 21.34 per cent in Reliance Infra.

  • Also read: SEBI bars Anil Ambani, 24 others for 5 years; group stocks plummet

Fortune Financial & Equities Services is going to invest ₹1,058 crore by subscribing to 4.41 equity shares through preferential allotment, while Florintree Innovations will invest ₹852 crore. The firm will be allotted 3.55 crore shares.

Preferential issues will enhance Reliance Infra’s net worth from ₹9,000 crore to ₹12,000 crore, with near zero debt.

  • Also read: Reliance ADAG companies’ stocks tumble following SEBI ban on Anil Ambani

The company is seeking shareholders’ nod through the postal ballot. The e-voting will start on September 20 and will end on October 19. The result of the postal ballot will be announced on October 21.

The Preferential Issue proceeds would be utilised for the 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.

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