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| Rel Infra to raise Rs 4,300 crore |
| Press Trust Of India / Mumbai May 25, 2009, 00:59 IST |
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Reliance Infrastructure today said it would raise up to Rs 4,300 crore through issuance of 42.9 million equity shares to its promoters (Anil Ambani Group), a move that would increase its promoters’ holding in the company to 48 per cent.
The board of directors at its meeting today have approved the issuance of 42.9 million shares to the promoters at a price of Rs 1,000 per share subject to shareholders approval, a company release said.
The equity shares would be alloted against an equal number of warrants issued in January, 2008. Pursuant to the said issuance, promoters’ holding in Reliance Infrastructure would increase from 38 per cent to 48 per cent.
The board has also approved cancellation of 4.3 crore equity warrants issued to AAA Project Ventures, a promoter group company on January 20, 2008.
“We have a great sense of excitement at the unprecedented opportunities unfolding before Reliance Infrastructure, in high growth areas of power and infrastructure development. The new equity capital infusion reflects our strong confidence in future growth prospects of the Company,” Reliance Infrastructure Chairman Anil Dhirubhai Ambani said. The said fund raising would substantially enhance Reliance Infrastructure’s net worth to over Rs 16,000 crore, and further augment its borrowing capabilities to Rs 32,000 crore at a debt to equity ratio of 2:1, the company added.
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