Shares of Anil Ambani's Reliance Infrastructure (RIIL) gained following the board's approval to raise Rs 3,014.4 crore through a preferential issue of up to 12.56 crore equity shares at an issue price of Rs 240 apiece.
The preferential issue will be made to promoter group entity Risee Infinity Private Limited and other non-promoter entities Florintree Innovation LLP, Fortune Financial & Equities Services Private Limited, the company said in a regulatory filing, adding that the issue will result in enhancing the promoter’s equity stake.
The issue will involve investments from former Blackstone executive Mathew Cyriac, participating through Florintree Innovation, and equity investor Nimish Shah, investing via Fortune Financial & Equities Services. Together, they will contribute Rs 1,200 crore for a minority stake in Reliance Infrastructure.
Anil Ambani, through Risee Infinity, which currently holds a 16 percent stake in the company, will invest the remaining Rs 1,814 crore.
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Additionally, the RIIL board also greenlit seeking enabling authorisation from the shareholders to raise up to Rs 3,000 crore by making a Qualified Institutional Placement (QIP).
The proceeds from the QIP 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, it said.
The company has significantly reduced its standalone external debt, bringing the amount down from Rs 3,831 crore to Rs 475 crore. Consequently, the Anil Ambani-led firm's net worth stands at around Rs 9,041 crore. The issue will also give a boost to company’s net worth, rising from Rs 9,000 crore to Rs 12,000 crore, it said.
Reliance Infra shares closed marginally higher at Rs 282.80 on NSE in the previous session. The stock has rallied 33 percent so far this year, outperforming Nifty's returns of 16 percent. In the past 12 months, the counter has risen 62 percent. In comparison, Nifty rose 27 percent during this period.
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