Fri Sep 20 05:10:08 UTC 2024: ## Reliance Infrastructure to Raise Rs 3,014 Crore Through Preferential Issue
**Mumbai, India** – Reliance Infrastructure announced today that its board has approved raising Rs 3,014.4 crore through a preferential issue of up to 12.56 crore equity shares at an issue price of Rs 240 apiece. The company will also seek shareholder approval to raise up to Rs 3,000 crore through a Qualified Institutional Placement (QIP).
The preferential issue proceeds will be used for business expansion, investments in subsidiaries and joint ventures, meeting long-term working capital requirements, and general corporate purposes.
The preferential issue will be made to promoter group entity Risee Infinity Private Limited and other non-promoter entities Florintree Innovation LLP, and Fortune Financial & Equities Services Private Limited. The company expects the issue to enhance the promoter’s equity stake.
Reliance Infrastructure has recently made significant progress in reducing its debt, lowering its standalone external debt from Rs 3,831 crore to Rs 475 crore. This reduction has boosted the company’s net worth to Rs 9,041 crore. The company has also cleared its outstanding dues to several lenders including Life Insurance Corporation of India, Edelweiss Asset Reconstruction Company Limited, ICICI Bank, and Union Bank.
Reliance Infrastructure shares ended Thursday on a flat note at Rs 284.75 on BSE. The company’s market capitalization stands at Rs 11,279 crore.
The company’s strong performance in reducing debt and its plan to raise capital through these new issues are expected to be welcomed by investors. The company’s shares are currently trading higher than all major moving averages, indicating positive momentum.
First Piper 