Reliance Infrastructure, fondly known as Reliance Infra or RInfra, is just one of the many arms under the vast umbrella of the Reliance Group, steered by the seasoned business magnate Anil Ambani.
Anil Ambani and October 1: The fate of Anil Ambani, the chairman and managing director of Reliance Group, hangs in balance as Reliance Infrastructure’s managerial body has planned a meeting for Tuesday, October 1st, where the board will deliberate and approve measures to secure long-term financial backing. Following their most recent board meeting held on September 19th, where the board approved a preferential issue of Rs 3,000 crore, the company is now focused on sourcing capital from both domestic and international markets.
What will Reliance Infrastructure board decide?
The Reliance Infrastructure’s managerial board will, among other things, meet on October 1 to “consider and approve raising of long term resources from domestic and/or global markets” through “equity shares/equity-linked securities/ warrants convertible into equity shares, by way of preferential issue and/or qualified institutional placement and/or rights issue and/or foreign currency convertible bonds or any other method including determination of issue price, if any and seeking members’ and other approval(s), as the Board may deem appropriate”, the company said in a regulatory filing post-market hours on Thursday.
Reliance Infrastructure, fondly known as Reliance Infra or R Infra, is just one of the many arms under the vast umbrella of the Reliance Group, steered by the seasoned business magnate Anil Ambani. As recent happenstances suggest, the company’s shares have experienced quite the surge, clocking a stunning 54 percent return from the beginning of the year till September 26.
Fund raiser by Reliance Infrastructure
Reliance Infrastructure revealed last week that its board has given the green light to raise a hefty sum of Rs 3,014 crore. This fund-raising effort will be achieved through a preferential issue of nearly 12.56 crore equity shares.
In a distinct regulatory filing, the firm signified its plan to direct this preferential issuance to Risee Infinity Pvt Ltd, which belongs to the promoter group. Further, other investors will be included, such as Florintree Innovation LLP and Fortune Financial & Equities Services Pvt Ltd.
This planned action of preferential issuance is speculated to amplify the equity stake for the promoters. Moreover, it is stated to align entirely with the SEBI (Issue of Capital and Disclosure Requirements) Regulations set in 2018, and other pertinent laws.