Reliance Infrastructure on Thursday said its board of directors has approved raising Rs 3,014 crore through preferential issue of up to 12.56 million equity shares.
In a regulatory filing, the company said the preferential issue will be made to Risee Infinity Pvt Ltd, a promoter group company and other investors namely Florintree Innovation LLP and Fortune Financial & Equities Services Pvt Ltd.
“The preferential issue will result in an increase in the shareholding of the promoters. The preferential issue will be carried out in accordance with the SEBI (Issue of Capital and Disclosure Requirements Regulations), 2018 and other applicable laws.
“The board also approved seeking permission from shareholders to raise up to Rs 3,000 crore through qualified institutional placement,” Reliance Infrastructure said.
According to the filing, the proceeds from the preferential issuance will 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.
The company said the preferential issue will increase the company’s net worth from over Rs 9,000 crore to over Rs 12,000 crore.
“The company’s debt is virtually zero. The capital raise will support the company’s participation in high growth sectors to contribute to the government’s vision of ‘Make In India’ and ‘Viksit Bharat’,” it said.
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