Reliance Infra to raise Rs6,000 cr through equity and debt issue

Anil Ambani Group company Reliance Infrastructure plans to raise over Rs6,000 crore through a combination of preferential share issue and qualified institutional placement.

Shareholders of the company have approved the fund raising plan with 98 per cent supporting the move in a postal ballot.

As per the plan approved by the board of directors of Reliance Infrastructure on Friday, Rs3,014 crore will be raised through preferential allotment of shares or convertible warrants and Rs3,000 crore through the QIP route.

The company will be offering a total of 125.6 million equity shares or convertible warrants at Rs240 per share. Of this, 46 million shares will be issued to promoters, to raise Rs1,104 crore. Promoters will be subscribing to the preferential issue through Risee Infinity Private Limited.

The remaining 79.6 million shares will be allocated to Mumbai-based Fortune Financial & Equities Services and Florintree Innovations LLP, who will be investing Rs1,058 crore and Rs852 crore, respectively.

Fortune Financial & Equities Services is an investment platform created by Nimish Shah while Florintree Innovations LLP is owned by former Blackstone executive Mathew Cyriac.

The preferential share-cum-debt issue is part of the Anil Ambani Group’s plan to raise around Rs17,600 crore, to improve its finances and support future growth. 

The infrastructure group, however, is bedevilled by falling stock prices of group companies, including Reliance Infrastructure and Reliance Power. These stocks are reported to have lost up to 90 per cent of their market value.

The current issue will add Rs3000 crore to Reliance Infrastructure’s net worth, taking it from Rs9,000 crore to Rs12,000 crore. Any further dilution of shareholding will depend on marker perceptions about the group.