NEW DELHI: Following Reliance Infrastructure's announcement of Rs 6,000 crore fundraising plans, another Anil Ambani group company - Reliance Power - is set to raise long-term funds.
The board of directors of Reliance Power will meet on Monday, September 23, to consider and approve the raising of long-term funds from domestic and/or global markets, through means such as a preferential issue, Qualified Institutional Placement (QIP), rights issue, or foreign currency convertible bonds.
In a media statement on September 18, Reliance Power announced that it has become a zero-debt company on a standalone basis. Promoters Anil Ambani and his family own 23.24 percent of Reliance Power.
On the same day, Reliance Infrastructure announced that it had reduced its standalone external debt from Rs 3,831 crore to Rs 475 crore. On September 19, the Reliance Infrastructure board approved a Rs 6,000 crore fundraising plan, of which Rs 3,014 crore will be raised through the preferential allotment of shares, while Rs 3,000 crore will be raised via QIP.
In the first phase, the company is launching a Rs 3,014 crore preferential placement, under which 12.56 crore equity shares or convertible warrants will be issued at an issue price of Rs 240 per share.
Of this amount, Rs 1,104 crore will be invested by the promoters through the promoter company, Risee Infinity Private Limited. Additionally, two Mumbai-based investment firms, Fortune Financial and Florintree Innovation, are set to invest Rs 1,910 crore in the company.
The preferential issue will enhance Reliance Infra's net worth from Rs 9,000 crore to Rs 12,000 crore, with near-zero debt. The proceeds from the preferential issue will be utilized for the expansion of business operations.