Promoter group invests Rs2,095 crore in RInfra, raises stake to 48 per cent

Reliance Infrastructure Limited has received a Rs2,095-crore capital boost with promoter group AAA Project Ventures Private Limited converting warrants into equity shares and thereby raising their shareholding to 48 per cent.

Reliance Infrastructure Limited (RInfra) today allotted 22.6 million equity shares to AAA Project Ventures Private Limited, a Reliance Anil Dhirubhai Ambani promoter group company, against convertible warrants issued to them for Rs2,095 crore ($460 million).

The shares were issued at a premium of around 15 per cent to the last two weeks' average of the company's stock price, the company said in a stock exchange filing.

The board had, in July 2009, allotted 42.9 million convertible warrants to AAA Project Ventures Private Limited entitling them to one equity share of Rs10 per warrant at an issue price of Rs929 per share. The issue price was calculated as per applicable SEBI guidelines.

With this fresh equity capital infusion, the promoter group's holding in Reliance Infrastructure has gone up to nearly 48 per cent from the existing nearly 43 per cent.

RInfra's consolidated net worth also stands enhanced to Rs23,125 crore ($5.1 billion), providing the company with increased financial flexibility, the release said.

Reliance Infra said it has no outstanding instruments for conversion to equity.

Reliance Infra has a market capitalisation of around Rs1,10,000 crore ($24 billion), net worth of around Rs84,000 crore ($18.5 billion), operating cash flow of Rs12,000 crore ($2.6 billion) and net profit of around Rs7,000 crore ($1.5 billion) and zero net debt, the release said