New Reliance Infra Fundraising: Reliance Infrastructure shareholders have approved the company’s plan to raise Rs 6,000 crore through a preferential issue of shares and a qualified institutional placement (QIP) route.
Both proposals received shareholder approval, with more than 98 percent voting in favor of the resolutions through postal voting, the company said in a statement to the stock exchange.
The board of directors of Reliance Infrastructure, on September 19, approved a fundraising plan of Rs 6,000 crore. Of this, Rs 3,014 crore would be raised through preferential allotment of shares or convertible warrants, while QIP would raise Rs 3,000 crore.
In the first phase, Reliance Infrastructure is launching preferential placement of Rs 3,014 crore by issuing 12.56 million equity shares or convertible warrants at an issue price of Rs 240 per share.
Of this, Reliance Infrastructure promoters will invest Rs 1,104 crore through promoter company Risee Infinity Private Ltd. Risee will subscribe for Rs 4.60 crore shares.
The other two investors participating in the preferred 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.
Fortune Financial & Equities Services will invest Rs 1,058 crore by subscribing to 4.41 equity shares through preferential allotment, while Florintree Innovations will invest Rs 852 crore. The company will be allocated 3.55 million shares.
The preferential issue will improve Reliance Infra’s net worth from Rs 9,000 crore to Rs 12,000 crore, with almost zero debt.
The proceeds from the preferential issue would be used for expansion of business operations directly and/or through investments in subsidiaries and joint ventures, including meeting long-term working capital requirements and for general corporate purposes.
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