Anil Ambani : Anil Ambani-led Reliance Infrastructure's shares will be in focus as shareholders have overwhelmingly approved the company's plan to raise Rs 6,000 crore through a preferential issue and qualified institutional placement ( QIP ). According to information from the company's exchange filing, more than 98% of the votes were in favor of the proposals during the postal ballot, indicating strong support for the move.

Reliance Infrastructure Preferential Issue Details

In the first phase, Reliance Infrastructure will launch a preferential issue of Rs 3,014 crore, offering 12.56 crore equity shares or convertible warrants at Rs 240 per share. Promoters through Rise Infinity Private Limited will contribute Rs 1,104 crore by subscribing to 4.60 crore shares. Apart from this, two other major investors - Mumbai-based Fortune Financial and Equities Services and Florintree Innovations LLP led by former Blackstone executive Mathew Cyriac - will invest Rs 1,058 crore and Rs 852 crore respectively. Together, they will buy a total of 7.96 crore shares.

What is the preferential issue?

Preferential issue under section 81 of the Companies Act, 1956 is an issue of shares or convertible securities by a listed company to a select group of persons which is neither a rights issue nor a public issue.

fundraising plan

The board approved the fundraising plan on September 19. Out of the total Rs 6,000 crore, Rs 3,014 crore will be raised through preferential allotment of shares or convertible warrants, while the remaining Rs 3,000 crore is planned to be raised through QIP.

Net worth will increase, and debt burden will decrease.

The preferential issue is expected to increase the net worth of Reliance Infrastructure from Rs 9,000 crore to Rs 12,000 crore, which will significantly improve the financial health of the company. The investment of funds will also help reduce the debt burden of the company, which will put the company in a strong position in the future. The amount raised from the fund will be used to expand the company's business operations, including investments in subsidiaries and joint ventures as well as to meet long-term working capital requirements.

Reliance Infrastructure Stock Performance

Reliance Infrastructure shares have delivered strong returns over multiple time frames. The stock has gained 49.60% in the last three months, indicating strong short-term growth. It gained 44.45% in six months, indicating a sustained upward momentum. Year-to-date, Reliance Infra shares have gained 34.06%, continuing its positive trend in 2024. The stock has gained over 66% in the last one year, reflecting its strong performance and growing investor attraction.

Manjari Kakkar Independent Director

Apart from approving the fundraising, shareholders also voted in favor of appointing Manjari Kakar as an independent director. Her inclusion on the board is expected to improve the company's governance standards, adding valuable expertise to the leadership team of Reliance Infrastructure.