Mon Oct 07 09:32:53 UTC 2024: ## Reliance Group Companies Poised for Growth with ₹17,600 Crore Fundraising

**New Delhi, Oct 6 (PTI):** Reliance Infrastructure Ltd and Reliance Power Ltd, both part of Anil Ambani’s Reliance Group, are set to implement their expansion strategies fueled by a massive ₹17,600 crore fundraising effort. The companies have already secured ₹4,500 crore through preferential equity share issues and another ₹7,100 crore from renowned global investment fund Varde Partners via equity-linked long-term FCCBs with a 10-year maturity and 5% interest rate.

An additional ₹6,000 crore is expected from a qualified institutional placement (QIP), with both companies aiming for ₹3,000 crore each. Shareholder approvals are expected by the end of October, allowing the companies to proceed with their ambitious plans.

This strategic move towards equity and equity-linked long-term bonds will provide essential capital for the Reliance Group’s expansion plans. Even with a conservative debt-to-equity ratio of 70:30, the over ₹17,000 crore raised will enable a total investment outlay of ₹50,000 crore for future business initiatives over the next few years. This fundraising will also significantly boost the net worth of both companies to approximately ₹25,000 crore.

The preferential equity share issues, totaling ₹4,500 crore, will see ₹1,750 crore invested by promoters and the remaining ₹3,750 crore contributed by four major investors: Fortune Financial & Equities Services, Florintree Innovations LLP, Authum Investment and Infrastructure, and Sanatan Financial Advisory.

These fundraising plans indicate a robust financial foundation for both companies, signifying a strong commitment to their growth objectives.

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