Reliance Infrastructure’s board on September 19 approved raising Rs 3014.4 crore by preferential issue of up to 12.56 crore equity shares of the company at an issue price of Rs 240 apiece, the firm said in an exchange filing.
The company said 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 filing showed.
The preferential issue will result in enhancing the promoter’s equity stake, the statement said.
Additionally, the board also okayed seeking enabling authorisation from the shareholders to raise up to Rs 3,000 crore by making a Qualified Institutional Placement (QIP).
The company said 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.
The issue will also give a boost to company’s networth, rising from Rs 9,000 crore to Rs 12,000 crore, the statement added. As of now, the company has near zero debt and enhanced capital is likely to “help participation in high growth sectors to aid the government’s vision of ‘Make In India’ and ‘Viksit Bharat’”.
The Board also approved issuance of postal ballot to seek shareholders’ approval for the preferential Issue and QIP, the company said.
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