Anil Ambani invests Rs1,104 cr as Reliance Infra achieves debt-free status
23 Sep 2024
Anil Ambani has made a spectacular comeback with fresh equity investment in Reliance Infrastructure after the company along with Reliance Power achieved debt-free status by clearing around Rs8,000 core debt.
Promoters Anil Ambani and family raised their stake in Reliance Infrastructure by investing Rs1,104 crore through subscription to 46 million shares in a Rs3,014-crore preferential issue.
Ambani family, which holds 21.34 per cent in the company, made the investment through Risee Infinity Private Limited.
Besides the Ambanis, Fortune Financial & Equities Services invested Rs 1,058 crore in the preferential issue acquiring 44.1 million shares while Florintree Innovations announced Rs852 crore investment to acquire 35.5 million shares.
The board of directors of Reliance Infrastructure approved the issue of 125.6 million preferential shares on Thursday after the two sister companies - Reliance Power and Reliance Infrastructure - turned debt-free, clearing a combined Rs8,000 crore in debt.
The preferential issue consists of shares and /or warrants convertible into equity shares at a price of Rs240 per share/warrant.
The board also sought authorisation from the shareholders to raise up to Rs3,000 crore through qualified institutional placement (QIP).
Reliance Infrastructure plans to use the proceeds from the issue for expansion of business operations and for general corporate purposes.
The issue will also raise the company’s net worth to over Rs12,000 crore. from over Rs9,000 crore at present.
Reliance Power achieved debt-free status by resolving all disputes with CFM Asset Reconstruction, relating to the pledging of shares of its subsidiary Vidarbha Industries Power (VIPL).
VIPL also ceased to be a subsidiary of Reliance Power by settling a Rs3,872 crore guarantee, which ended all of Reliance Power’s obligations as VIPL’s guarantor.
In the case of Reliance Infra, Invent Assets Securitisation and Reconstruction Private Limited, a lender to the company, used certain charged securities to recover dues, thereby reducing debt to around Rs475 crore from Rs3,831 crore.