Fundraising Breakdown
The fundraising initiative includes raising ₹3,014 crore through the preferential allotment of equity shares or convertible warrants. The company plans to issue approximately 12.56 crore equity shares at an issue price of ₹240 per share. This initial phase is expected to significantly enhance the company’s capital structure and support its business expansion efforts.In addition to the preferential issue, Reliance Infrastructure aims to secure the remaining ₹3,000 crore via QIP. This dual approach not only diversifies funding sources but also strengthens investor confidence in the company’s growth trajectory.
Key Investors Join the Initiative
Two prominent investors are set to play a crucial role in this fundraising plan. Fortune Financial & Equities Services will invest ₹1,058 crore, while Florintree Innovations LLP, led by former Blackstone executive Mathew Cyriac, will contribute ₹852 crore. Together, these investments will account for a substantial portion of the total shares being issued, with both firms acquiring a combined total of 7.96 crore shares.Promoters of Reliance Infrastructure will also participate significantly, with Risee Infinity Private Limited committing ₹1,104 crore by subscribing to 4.60 crore shares. This commitment from both institutional and promoter investors underscores a strong belief in the company’s future prospects.
Impact on Company Valuation
The successful completion of this fundraising initiative is projected to elevate Reliance Infrastructure’s net worth from ₹9,000 crore to an estimated ₹12,000 crore. This increase is expected to provide the company with enhanced financial flexibility and reduce its overall debt burden, positioning it for future growth opportunities.
Conclusion
With this approval from shareholders and substantial backing from key investors, Reliance Infrastructure is poised for a transformative phase. The funds raised will be strategically utilized for expanding business operations and investing in subsidiaries and joint ventures while addressing long-term working capital needs.Disclaimer: The information provided is based on various sources and may be subject to change as new updates become available.
