Reliance Infrastructure will get fresh capital of Rs 3,010 crore from promoters and investors

Anil Ambani's Reliance Infrastructure is going to get Rs 1,100 crore through equity investment from the promoters and Rs 1,910 crore from two Mumbai-based investment firms. The company has given this information to the stock market today. Earlier, on Thursday, the company's board had approved the plan to raise an additional amount of Rs 6 thousand crore. Out of this, Rs 3,014 crore was to be raised through preferential shares and Rs 3 thousand crore through qualified institutional placement (QIP).

In the first phase, the company will issue a preferential placement of Rs 3,014 crore under which 12.56 crore equity shares or convertible warrants will be issued at an issue price of Rs 240 per share. Out of this issue, Rs 1,104 crore will be invested by the promoters of Reliance Infrastructure through their company Rise Infinity Private Limited. Rise will buy 4.60 crore shares. Two other investors participating in the preferential shares include Mumbai-based Fortune Financial and Equities Services and Florintree Innovations LLP.

Fortune Financial and Equities Services will invest Rs 1,058 crore by buying 4.41 crore shares through preferential issue and Florintree Innovations will invest Rs 852 crore. The company will get 3.55 crore shares. Florintree is owned by former Blackstone authority Matthew Cyriac and Fortune Financial is owned by Nimish Shah. Promoters have 21.34 percent stake in Reliance Infra. Apart from this, through preferential issue, the total assets of Reliance Infra will increase from Rs 9 thousand crore to Rs 12 thousand crore and the company will also be debt-free.

The company is seeking shareholders' approval through postal ballot. Prior to that, the company had also reduced its debt liability by 87 per cent to Rs 475 crore. The company will use the proceeds from the preferential issue to expand its business or invest in subsidiaries and joint ventures, including meeting long-term working capital requirements.

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