Thu Sep 19 20:09:00 UTC 2024: ## Reliance Infrastructure to Raise ₹6,014 Crore for Expansion and Growth
**Mumbai, India:** Reliance Infrastructure Ltd, led by Anil Ambani, announced plans to raise up to ₹6,014 crore through a combination of share sales and convertible warrants. This comes just a day after the company resolved its arbitration dispute with Adani Group over power distribution and settled a loan dispute with CFM Asset Reconstruction.
The company’s board approved a plan to raise ₹3,014 crore through a preferential issue of equity shares or warrants convertible into shares, priced at ₹240 per share. The remaining ₹3,000 crore will be raised through a qualified institutional placement (QIP), pending shareholder approval.
Following news of the debt-free status and dispute settlements on Wednesday, Reliance Infrastructure’s stock climbed to ₹284.75 per share on the BSE.
The company plans to use the proceeds from the fundraise to expand its business operations, invest in subsidiaries and joint ventures, and meet long-term working capital requirements.
The preferential issue will see shares allotted to promoter group company Risee Infinity Pvt. Ltd., Florintree Innovation LLP, and Fortune Financial & Equities Services Pvt. Ltd., increasing the promoter’s effective holding in Reliance Infrastructure.
The move will boost the company’s net worth from ₹9,000 crore to over ₹12,000 crore. With near zero debt, the company aims to capitalize on high-growth sectors, aligning with the government’s ‘Make In India’ and ‘Viksit Bharat’ visions.
The announcement comes on the heels of Reliance Power Ltd (RPower), a subsidiary of Reliance Infrastructure, settling its ₹3,872.04 crore loan obligation as a guarantor for its former subsidiary Vidarbha Industries Power, paving the way for Adani Group’s potential acquisition of the latter’s power plant.
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