R-Infra’s Strategic Move: Board Plans Vital Long-Term Capital Infusion on October 1 | Company News

Reliance Infrastructure to Consider Raising Long-Term Capital

Last Updated: Sep 27, 2024 | 12:26 AM IST

Anil Ambani’s Reliance Infrastructure Limited (R-Infra) is set to explore raising long-term capital from both domestic and global markets. As detailed in a recent stock exchange filing, the company’s board will convene on Tuesday, October 1, to deliberate and possibly approve this financial strategy.

The anticipated capital infusion could be executed via multiple avenues, including the issuance of equity shares, equity-linked securities, or convertible warrants. Potential methods for raising funds encompass preferential issues, qualified institutional placements (QIP), rights issues, foreign currency convertible bonds, and more. The final issue price will be determined during the board meeting, contingent upon necessary member and other approvals.

Previously, on September 19, R-Infra’s board sanctioned a considerable fund-raising endeavor exceeding Rs 6,000 crore. This included Rs 3,014 crore via preferential allotment of equity shares and Rs 3,000 crore through a QIP. The company indicated that these proceeds would support expanding business operations, sustaining long-term working capital requirements, and general corporate purposes, whether directly or through investments in subsidiaries and joint ventures.

Additionally, earlier in September, R-Infra announced a significant reduction in its standalone external debt by 87.6%, bringing it down to Rs 475 crore from Rs 3,831 crore as of June.

First Published: Sep 27, 2024 | 12:26 AM IST

Original Story https://www.business-standard.com/companies/news/r-infra-to-consider-raising-long-term-capital-in-board-meeting-on-october-1-124092700012_1.html
Category :
Tags: