R-Infra promoters to up stake to 48% post allotment

Promoters will hike their stake in Anil Ambani group firm Reliance Infrastructure to 48 per cent pursuant to conversion of warrants allotted to them into equity shares for an estimated Rs 1,600 crore.

In a regulatory filing to the Bombay Stock Exchange (BSE), the company said that it will tomorrow consider the allotment of shares to promoter group entity AAA Project Ventures, following the conversion of warrants issued to them in July 2009 at a price of Rs 928.89 per share.

AAA Project Ventures had allotted at that time a total of 4.29 crore warrants, convertible into equal amount of shares at a price of Rs 928.89, resulting into total price of about Rs 4,000 crore.

Out of this, over half the warrants have been converted into shares and the shares would be allotted for remaining warrants for an estimated Rs 1,600 crore after tomorrow's meeting of the board committee on allotments, sources said.

Pursuant to the share allotment, the promoters' holding will increase to 48 per cent, sources added. The promoters held about 43 per cent stake at the end of September 2010.

In the regulatory filing, R-Infra said that its Committee of Directors (Allotment) will meet on January 7 to consider allotment at a price of Rs 928.89 per share to AAA Project Ventures pursuant to warrant conversion by them.

The conversion price is considerably above the current market price of R-Infra shares, which were trading 1.5 per cent up at Rs 869.45 in the afternoon trade.

In June 2009, shareholders of the company had approved issue of warrants to the promoter entity. Thereafter, the company allotted 4.29 crore warrants to AAA Project Ventures which were convertible into equivalent number of equity shares at a price of Rs 928.89 per share.

The warrants carried the option to be converted into shares at any time after October 9, 2009, but not after 18 months from the date of allotment of warrants, the company had said at that time.

The infrastructure arm of Anil Ambani group saw its net profit rising to Rs 1,519.39 crore for the year ended March 31, 2010, as compared to Rs 1,353.23 crore for the previous year.

Its total income rose from Rs 13,596.44 crore in the year ended March 31, 2009 to Rs 15,689.67 crore for the year ended March 31, 2010.