Reliance Infrastructure Secures ₹1,100 Crore Infusion from Promoters Amid Fundraising Efforts

Reliance Infrastructure, led by Anil Ambani, is set to receive a substantial equity infusion of ₹1,100 crore from its promoters. This investment will be made through the promoter company Risee Infinity Private Limited, which plans to subscribe to 46 million shares at an issue price of ₹240 per share. The announcement came in a stock exchange filing on September 20, 2024.

This infusion is part of a broader fundraising strategy, with the company aiming to raise over ₹6,000 crore. The plan includes raising ₹3,014 crore through a preferential allotment of equity shares and an additional ₹3,000 crore through a qualified institutional placement.

In the first phase of this fundraising initiative, Reliance Infrastructure will launch a preferential placement, which is expected to significantly bolster its financial standing. The equity infusion will enhance the company's net worth from ₹9,000 crore to ₹12,000 crore while maintaining near-zero debt levels. Currently, promoters hold a 21.34% stake in Reliance Infrastructure.

The preferential issue will also involve investments from two Mumbai-based firms: Fortune Financial & Equities Services and Florintree Innovations LLP. Fortune Financial plans to invest ₹1,058 crore by subscribing to 44.1 million equity shares, while Florintree Innovations will invest ₹852 crore for 35.5 million shares. Florintree is owned by former Blackstone executive Mathew Cyriac, and Fortune Financial is led by Nimish Shah.

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Reliance Infrastructure's board approved the fund-raising plan on September 19, 2024, and the company is now seeking shareholders' approval through a postal ballot. Previously, the company successfully reduced its debt obligations by 87%, bringing them down to ₹475 crore. The proceeds from the preferential issue will be utilized for expanding business operations, investments in subsidiaries and joint ventures, and fulfilling long-term working capital needs.

Source: Business Standard