Reliance Infra Secures Major Equity Infusion, Ups Net Worth

Reliance Infrastructure Ltd, led by Anil Ambani, is set to receive a significant equity infusion totaling Rs 3,014 crore. The fundraise, approved by the board, will be conducted through a preferential allotment and will involve investments from the promoters and two Mumbai-based investment firms.

Anil Ambani's flagship firm, Reliance Infrastructure Ltd, will receive a substantial equity infusion of Rs 1,100 crore from promoters and Rs 1,910 crore from two Mumbai-based investment firms, as per a company filing.

The company's board approved a Rs 6,000 crore fundraising plan on Thursday, with Rs 3,014 crore to be raised through a preferential allotment of shares. An additional Rs 3,000 crore will be sourced from institutional buyers.

In the first phase, the company will launch a Rs 3,014 crore preferential placement, issuing 12.56 crore equity shares or convertible warrants at Rs 240 per share, seeking shareholder approval via postal ballot.

From this, Rs 1,104 crore will come from promoters through Risee Infinity Private Limited, which will subscribe to 4.60 crore shares.

Two other investors, Fortune Financial & Equities Services and Florintree Innovations LLP, are set to participate. Fortune Financial, owned by Nimish Shah, will invest Rs 1,058 crore for 4.41 crore equity shares. Florintree Innovations, owned by former Blackstone executive Mathew Cyriac, will invest Rs 852 crore for 3.55 crore shares.

The preferential issues will boost Reliance Infra's net worth from Rs 9,000 crore to Rs 12,000 crore, nearly eliminating its debt. The firm is seeking shareholder approval via postal ballot, with e-voting running from September 20 to October 19, and results to be announced on October 21.

Proceeds from the preferential issue will be used to expand business operations, invest in subsidiaries and joint ventures, and meet long-term working capital needs and general corporate purposes.

(With inputs from agencies.)