Anil Ambani has made a remarkable comeback by investing in Reliance Infrastructure with fresh equity. This investment was made after the company, along with Reliance Power, achieved debt-free status by clearing approximately Rs8,000 in core debt.
Promoters Anil Ambani and his family increased their ownership of Reliance Infrastructure by investing Rs1,104 crore in a Rs3,014-crore preferential issue, which involved the subscription of 46 million shares.
The investment was made by the Ambani family through Risee Infinity Private Limited, which holds 21.34 per cent of the company.
In addition to the Ambanis, Fortune Financial & Equities Services invested Rs 1,058 crore in the preferential issue, acquiring 44.1 million shares. Florintree Innovations announced an investment of Rs852 crore, acquiring 35.5 million shares.
The board of directors of Reliance Infrastructure approved the issuance of 125.6 million preferential shares on Thursday, following the debt-free status of the two sister companies, Reliance Power and Reliance Infrastructure, which cleared a combined Rs8,000 crore in debt.
The preferential issue comprises shares and/or warrants that are convertible into equity shares at a price of Rs240 per share/warrant.
The board also requested shareholder approval to raise up to Rs3,000 crore through qualified institutional placement (QIP).
Reliance Infrastructure intends to allocate the proceeds from the issue to the expansion of its business operations and for general corporate purposes.
The company’s net worth will also increase to over Rs12,000 crore as a result of the issue. From the current level of over Rs9,000 crore.
Reliance Power achieved debt-free status by resolving all disputes with CFM Asset Reconstruction regarding the pledging of shares of its subsidiary Vidarbha Industries Power (VIPL).
By settling a Rs3,872 crore guarantee, VIPL also ceased to be a subsidiary of Reliance Power, thereby terminating all of Reliance Power’s obligations as VIPL’s guarantor.
In the case of Reliance Infra, Invent Assets Securitisation and Reconstruction Private Limited, a lender to the company, utilized specific charged securities to recoup dues, resulting in a reduction of debt from Rs3,831 crore to approximately Rs475 crore.
