Reliance Infra for major leap with Rs1,100cr promoter infusion

NEW DELHI:  Reliance Infrastructure Ltd (Reliance Infra), Anil Ambani’s flagship company, is readying itself for a major transformation with a fresh Rs1,100 crore equity infusion from its promoters.

Alongside this, the company will also secure Rs1,910 crore from two prominent Mumbai-based investors, signaling a significant step towards bolstering its financial strength and expanding business operations.

Rs6,000cr fund raising

The equity infusion forms part of a larger Rs6,000 crore fund-raising initiative, of which Rs3,014 crore will be raised through a preferential allotment of shares, and another Rs3,000 crore from institutional buyers. In this first phase, Reliance Infra plans to issue 12.56 crore equity shares or convertible warrants at a price of Rs240 per share.

The promoters, through their entity Risee Infinity Private Ltd, will invest Rs1,104 crore by subscribing to 4.60 crore shares.

Additionally, major investors such as Fortune Financial & Equities Services, owned by Nimish Shah, and Florintree Innovations LLP, led by former Blackstone executive Mathew Cyriac, will infuse Rs1,058 crore and Rs852 crore, respectively, through the preferential issue.

Eyeing zero-debt position

With these investments, Reliance Infra’s net worth is projected to rise from Rs 9,000 crore to Rs 12,000 crore, placing the company on a stronger financial footing and pushing it towards a near-zero debt position.

The infusion will also support the company’s long-term working capital needs, expansion plans, and investment in subsidiaries and joint ventures.

The company is currently seeking shareholder approval via a postal ballot, with e-voting scheduled between September 20 and October 19. The result will be announced on October 21.