Reliance Infrastructure Plans Rs 3,000-Crore Fundraising via QIP

On September 19, 2024, the board of Reliance Infrastructure approved a strategic financial move to raise Rs 3014.4 crore through a preferential issue of up to 12.56 crore equity shares. These shares will be priced at Rs 240 each, as stated in an official exchange filing. The preferential issue is directed towards promoter group entity Risee Infinity Private Limited and other non-promoter entities including Florintree Innovation LLP and Fortune Financial & Equities Services Private Limited.

The preferential issue is expected to increase the promoter’s equity stake. Furthermore, the board has decided to seek shareholder approval to raise up to Rs 3,000 crore through a Qualified Institutional Placement (QIP). The company revealed that the funds from the QIP would be allocated to business expansions, investments in subsidiaries and joint ventures, and covering long-term working capital needs along with general corporate expenditures.

This financial strategy is projected to enhance the company’s net worth from Rs 9,000 crore to Rs 12,000 crore. Currently, Reliance Infrastructure has nearly zero debt, and the increased capital is anticipated to bolster its participation in fast-growing sectors, aligning with the government’s ‘Make In India‘ and ‘Viksit Bharat‘ initiatives.

The Board has also approved the issuance of a postal ballot to secure shareholders’ endorsement for both the preferential issue and the QIP. This major financial initiative marks a significant step for Reliance Infrastructure’s growth and contribution to national economic objectives.