Anil Ambani’s Reliance Infrastructure Limited (R-Infra) is contemplating the possibility of securing long-term funding from both domestic and international markets, as indicated in a recent filing with the stock exchange.
A board meeting has been scheduled for Tuesday, October 1, to deliberate on and potentially approve this initiative.
The company is exploring various avenues for raising these funds, which may include issuing equity shares, equity-linked instruments, or warrants that can be converted into equity shares. This could be achieved through methods such as preferential issues, qualified institutional placements (QIPs), rights offerings, foreign currency convertible bonds (FCCBs), or other suitable strategies.
The specific pricing for these issues will be established during the upcoming board meeting and will require approval from shareholders and any other necessary parties deemed appropriate by the board.
On September 19, R-Infra’s board had already sanctioned a fundraising strategy aimed at generating over Rs 6,000 crore. This plan includes raising Rs 3,014 crore via a preferential allotment of equity shares and an additional Rs 3,000 crore through QIPs.
The proceeds from this preferential issue are intended to support business expansion efforts directly or through investments in subsidiaries and joint ventures. These funds will also help meet long-term working capital needs as well as serve general corporate purposes.
In another significant development earlier this month, R-Infra reported an impressive reduction in its standalone external debt by approximately 87.6%, bringing it down to Rs 475 crore from Rs 3,831 crore recorded in June.
This strategic move reflects the company’s commitment to strengthening its financial position while pursuing growth opportunities within its operational framework.
