Reliance Infrastructure jumps 12% to hit 52-week high as board approves fundraising

In a regulatory filing, the company said the preferential issue shall be made to Risee Infinity, a promoter group company, and to other investors, namely Florintree Innovation LLP and Fortune Financial & Equities Services. 

"The preferential issue will result in enhancing the promoters' equity stake. The preferential issue shall be made in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and other applicable law.

"The board also approved seeking enabling authorisation from the shareholders to raise up to ₹3,000 crore by making a qualified institutional placement," Reliance Infrastructure said.

According to the filing, the preferential issue proceeds 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 company said the preferential issue will enhance the company's net worth from over ₹9,000 crore to over ₹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'," it said.

About Reliance Infrastructure

Reliance Infrastructure is a part of Reliance Group, which is led by Anil Ambani. The company was incorporated in 1929. Reliance Infrastructure is engaged in the business of providing engineering and construction (E&C) services for power, roads, metro rail, and other infrastructure sectors. 

The company is also engaged in the implementation, operation, and maintenance of several projects in the defence sector and infrastructural areas through its special purpose vehicles.