 "Rel Infra to raise Rs 550 cr from Anil Ambani group, Varde Investment")
The Reliance Infrastructure (RInfra) board on Sunday gave its nod for raising funds up to Rs 550.56 crore from its promoter, the Anil Ambani group, and Varde Investment.
The company said it would make preferential allotment of up to 88.8 million equity shares and/or an equivalent number of warrants convertible, to the promoter group and VFSI Holdings, an affiliate of Värde Investment Partners.
Of the total, the Anil Ambani group will invest Rs 400 crore, with the rest coming from Varde. The shares will be issued at Rs 62 apiece. The company’s shares closed at Rs 69.85 apiece on Friday.
The funds raised will be utilised for long-term resources, general corporate purpose, funding future growth, and reduction in the firm’s Rs 3,808-crore debt. The board decided, during the Sunday meeting, to seek approval of shareholders through a postal ballot.
RInfra is among the largest infrastructure players, developing projects through various Special Purpose Vehicles (SPVs) in several high-growth sectors like power, roads, and metro rail in the infrastructure space, and the defence sector.
For FY21, it reported revenue of Rs 1,689 crore and loss of Rs 19 crore.
According to BSE data, the promoters own 4.98 per cent stake.
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