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Reliance Infrastructure secures INR 6,000 crore fundraising approval from shareholders

#Taxation & Finance News#India
Last Updated : 28th Oct, 2024
Synopsis

Shareholders of Reliance Infrastructure have overwhelmingly approved a plan to raise INR 6,000 crore through a preferential issue of shares and qualified institutional placement (QIP). Over 98% of votes favored the resolutions via postal ballot. The fundraising, approved by the board on September 19, includes INR 3,014 crore from the preferential allotment of 12.56 crore shares at INR 240 each, with significant investments from promoters and key investors. This initiative will boost Reliance Infrastructure's net worth from INR 9,000 crore to INR 12,000 crore and nearly eliminate its debt, positioning the company for growth and enhanced shareholder value.

Shareholders of Reliance Infrastructure have approved the company's plan to raise INR 6,000 crore through a preferential issue of shares and the qualified institutional placement (QIP) route. Both proposals received shareholder approval, with over 98 percent voting in favour of the resolutions via postal ballot, the company announced.


On September 19, Reliance Infrastructure's board had approved an INR 6,000-crore fundraising plan. Of this amount, INR 3,014 crore is set to be raised through the preferential allotment of shares or convertible warrants, while INR 3,000 crore will be raised via QIP.

In the first phase, Reliance Infrastructure is initiating the INR 3,014 crore preferential placement by issuing 12.56 crore equity shares or convertible warrants at an issue price of INR 240 per share. Out of this, INR 1,104 crore will be invested by the promoters of Reliance Infrastructure through promoter Rise Infinity Private Ltd.

The other two investors are Fortune Financial & Equities Services and Florintree Innovations LLP. Florintree, owned by former Blackstone executive Mathew Cyriac, and Fortune Financial, owned by Nimish Shah, will also participate in the investment. Fortune Equities Services is set to invest INR 1,058 crore by subscribing to 4.41 crore equity shares through the preferential allotment, while Florintree Innovations will invest INR 852 crore, receiving 3.55 crore shares in return. This preferential issue will increase Reliance Infrastructure's net worth from INR 9,000 crore to INR 12,000 crore, with nearly zero debt.

In conclusion, this successful fundraising initiative positions Reliance Infrastructure for growth and expansion. With strengthened financial backing and enhanced net worth, the company is well-equipped to pursue its strategic objectives and enhance shareholder value.

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