The Hindu : Business : Reliance Infra to raise Rs. 4,300 cr

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Tuesday, May 26, 2009
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Reliance Infra to raise Rs. 4,300 cr

Special Correspondent

NEW DELHI: Anil Dhirubhai Ambani owned Reliance Infrastructure has planned to raise about Rs. 4,300 crore through issuance of 4.29 crore equity shares to its promoters, a move that would increase its promoters’ holding in the company to 48 per cent from the present 38 per cent.

Promoters’ share

The board of directors at its meeting on Sunday approved the issuance of 4.29 crore shares to the promoters at a price of Rs. 1,000 a share subject to shareholders’ approval, according to an official release here.

The equity shares would be allotted against an equal number of warrants issued in January, 2008, the company said in a statement.

“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.

Networth

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.

Pursuant to the equity infusion, the company would rank among the top ten private sector companies in India as the net worth would increase from Rs. 11,907 crore to over Rs. 16,000 crore.

The preferential offer would be made to the promoters, Reliance Anil Dhirubhai Ambani Group.

Besides, Life Insurance Corporation and other insurance companies, which have been long-term shareholders of the company, over the past several decades and who collectively hold around 20 per cent equity, would be provided an opportunity to participate in the proposed offering, on the same terms and conditions, the statement said.

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