The board of directors of Reliance Infrastructure at its meeting on Thursday has approved raising of ₹3,014 crore.
This will be done by preferential issue of up to 12.56 crore equity shares and /or warrants convertible into equivalent number of equity shares of the company for cash, at a price of ₹240 per share/warrant.
The preferential Issue shall be made to Risee Infinity Private Ltd, a promoter group company and to other investors namely Florintree Innovation LLP and Fortune Financial & Equities Services Private Ltd. The preferential issue will result in enhancing the promoters equity stake.
Use of funds
“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 ₹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,” said a press release.
Preferential Issue will enhance the company’s networth from over ₹9,000 crore to over ₹12,000 crore. The company said it has near-zero debt.