Anil Ambani’s Reliance Infra looks to raise Rs 6,000 crore

MUMBAI:Reliance Infrastructure, led by Anil Ambani, is seeking to raise Rs 6,014 crore to support its expansion plans.

The company will initially raise Rs 3,014 crore through a preferential issue, followed by an additional Rs 3,000 crore through a qualified institutional placement (QIP) transaction.

The preferential issue will see participation from Mathew Cyriac, a former Blackstone executive, through Florintree Innovation, and Nimish Shah, an equity investor, via Fortune Financial & Equities Services. Together, they will invest Rs 1,200 crore for a minority stake in Reliance Infra.

Ambani, through Risee Infinity, which already holds a 16% stake in the company, will invest the remaining Rs 1,814 crore.

The funds raised through the preferential issue will be used to finance Reliance Infra's growth plans, meet working capital requirements, and other purposes, the company stated in a regulatory notice. It has not yet decided whether to opt for an issuance of equity shares or convertible warrants.

Reliance Infra, with a market cap of Rs 11,280 crore and near-zero debt, operates in various sectors, including road projects, power distribution in Delhi, and defense equipment manufacturing in collaboration with Rafale. The preferential issue will augment the company's networth to Rs 12,000 crore from Rs 9,000 crore, supporting its participation in high-growth sectors.

The proposed investments by Cyriac and Shah demonstrate their confidence in Reliance Infra's potential and future prospects, while Ambani's investment showcases his ongoing commitment to the company and belief in its growth story. The successful completion of the preferential issue and the potential QIP deal will further strengthen Reliance Infra's financial position and provide the necessary flexibility to explore new opportunities.


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