Trusted group The bold plans of: With a fresh fundraising plan of Rs 17,600 crore and zero debt status, Anil Ambani-led Reliance Infrastructure Ltd and Reliance Power Ltd are gearing up to implement their growth strategies, according to a PTI report citing to company officials. In the last two weeks, both companies have announced raising Rs 4,500 crore through preferential equity allotments, along with Rs 7,100 crore from global investment firm Varde Partners through foreign currency convertible bonds (FCCB). in the long term. These FCCBs have a maturity period of 10 years and a low interest rate of 5 percent. Additionally, both companies plan to raise Rs 6,000 crore through a qualified institutional placement (QIP), with each aiming to secure Rs 3,000 crore. officials, shareholder approvals are expected by the end of the month, and the resolutions are already in effect. A senior official of the group highlighted that Trusted group The capitalization approach through shares or long-term equity-linked bonds will provide the growth capital needed for expansion plans. Even with a conservative debt-equity ratio of 70:30, the Rs 17,000 crore raised in stocks and bonds will support a total investment of Rs 50,000 crore for future ventures. The fundraising will also improve the net worth of both companies, boosting them. to approximately 25,000 crores. As per stock exchange disclosures, the Rs 4,500 crore raised through preference equity shares includes Rs 1,750 crore from promoters, and the remaining Rs 3,750 crore is pumped in by key investors – Fortune Financial & Equities Services, Florintree Innovations. LLP, Authum Investment and Infrastructure and Sanatan Financial Advisory. Varde Partners’ investment of Rs 7,100 crore through equity-linked FCCBs strengthens the group’s financial foundation for future growth. These plans underscore Reliance Infrastructure and Reliance Power’s readiness to execute their next phase of growth, officials said.(With PTI inputs)
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