Reliance Infrastructure shareholders clear Rs 6,000-crore fund-raising plan

Reliance Infrastructure, part of the Reliance Group led by top businessman Anil Ambani, said on Sunday that its shareholders had approved a plan to raise Rs 6,000 crore by the issuance of shares through preferential and qualified institutional placement (QIP) routes. The company said the shareholders gave nod to both proposals in this regard, with more than 98 per cent votes in favour of the resolutions through a postal ballot. 

On September 19, Reliance Infrastructure's board had approved a plan to raise Rs 6,000 crore.

The company aims to raise Rs 3,014 crore through the preferential allotment of shares or convertible warrants and Rs 3,000 crore through a QIP of shares.

In the first phase, Reliance Infrastructure will launch the preferential issuance of 12.56 crore equity shares or convertible warrants at Rs 240 per share, out of which, a sum of Rs 1,104 crore will be invested by the promoters of Reliance Infrastructure through promoter company Risee Infinity Pvt Ltd. Risee Infinity will subscribe to 4.60 crore shares.

The two other investors participating in the preferential issue are Mumbai-based Fortune Financial & Equities Services and Florintree Innovations LLP.  Florintree is owned by former Blackstone executive Mathew Cyriac while Fortune Financial is owned by equity investor Nimish Shah.

Fortune Financial & Equities Services is going to invest Rs 1,058 crore by subscribing to 4.41 equity shares though the preferential allotment, while Florintree Innovations will invest Rs 852 crore. The firm will be allotted 3.55 crore shares.

The preferential issue will enhance Reliance Infra's net worth from Rs 9,000 crore to Rs 12,000 crore, with near zero debt, according to the company. 

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