Anil Ambani led Reliance Infrastructure to raise Rs 6,000 cr via share sale

This follows the resolution of its arbitration disputes with the Adani Group regarding power distribution and a loan issue with CFM Asset Reconstruction, media reports said.

In a release after a board meeting, Reliance Infrastructure stated it aims to raise Rs 3,014 crore via a preferential issue of up to 125.6 million equity shares or warrants (which can be converted into an equivalent number of equity shares) at Rs 240 per share. The stock reacted positively to the news, closing at Rs 284.75 per share on the BSE.

The company plans to raise up to Rs 3,000 crore through a qualified institutional placement (QIP), for which it will seek shareholder approval soon.

Reliance Infrastructure primarily operates in power distribution in Delhi and provides EPC services. It is also involved in defence projects and manages various infrastructure projects, including metro services, toll roads, and airports through special purpose vehicles.

The proceeds from the proposed preferential issue will be used for expanding business operations, either directly or through investments in subsidiaries and joint ventures. The funds may also address the company's long-term working capital needs.

Shares from the preferential issue will be allocated to a promoter group company, Risee Infinity Pvt. Ltd., along with other investors such as Florintree Innovation LLP and Fortune Financial & Equities Services Pvt. Ltd.

This move is expected to increase the promoter's effective holding in Reliance Infrastructure and boost the company's net worth from Rs 9,000 crore to over Rs 12,000 crore.

"The company has near zero debt. The enhanced capital will support the company’s participation in high-growth sectors to aid the government’s vision of ‘Make In India’ and ‘Viksit Bharat’," the company stated.

On Wednesday, Reliance Infrastructure’s subsidiary, Reliance Power Ltd (RPower), settled a loan obligation of Rs 3,872.04 crore as a corporate guarantor for the debt of its former subsidiary, Vidarbha Industries Power. Vidarbha Industries owns a 600MW thermal power plant in Butibori, Nagpur, which the Adani Group has expressed interest in acquiring.