Reliance Infra to Raise Funds, Board Meeting on Oct 1
Sep 26, 2024 19:56
Reliance Infrastructure's board will meet on October 1 to consider raising long-term resources through equity shares, warrants, and other methods. The company aims to enhance its capital base and support its participation in high-growth sectors.
New Delhi, Sep 26 (PTI) Reliance Infrastructure on Thursday said its board will meet next week to consider and approve raising of long-term resources from domestic and/or global markets.
This will be the second meeting after September 19 where the company's board approved Rs 3,000-crore preferential issue.
"A meeting of the Board of Directors of the company will be held on Tuesday, October 1, 2024, inter alia, to consider and approve raising of long term resources from domestic and/or global markets, inter alia, by issue of equity shares/equity linked securities/ warrants convertible into equity shares, by way of preferential issue and/or qualified institutional placement and/or rights issue and/or foreign currency convertible bonds or any other method including determination of issue price," the company said a regulatory filing.
Last week, Reliance Infrastructure said its board of directors has approved raising of Rs 3,014 crore by preferential issue of up to 12.56 crore equity shares.
In a separate regulatory filing, the company had said the preferential issue shall be made to Risee Infinity Pvt Ltd, a promoter group company and to other investors, namely Florintree Innovation LLP and Fortune Financial & Equities Services Pvt Ltd.
"The preferential issue will result in enhancing the promoters' equity stake. The preferential issue shall be made in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and other applicable law.
"The board also approved seeking to enable authorisation from the shareholders to raise up to Rs 3,000 crore by making a qualified institutional placement," Reliance Infrastructure had said.
According to the filing, the preferential issue proceeds will be used for expansion of business operations directly and/or through investment in subsidiaries and joint ventures, including meeting the long-term working capital requirements and for general corporate purposes.
The company had said the preferential issue will enhance the company's net worth from more than Rs 9,000 crore to over Rs 12,000 crore.
"The company has near zero debt. The enhanced capital will support the company's participation in high growth sectors to aid the government's vision of 'Make In India' and 'Viksit Bharat'," it had said.
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