Reliance Infra to raise ₹550 crore from promoters, VFSI Holdings to pare debt
1 min read . Updated: 07 Jun 2021, 01:06 AM IST
Premium- The funds raised would be utilised for long term resources, for general corporate purposes and to fund future growth as well as to reduce debt
Anil Ambani’s Reliance Infrastructure Ltd (RInfra) on Sunday said that its board has approved raising a sum of ₹550.56 crore by preferential allotment of up to 88.8 million shares and/or warrants convertible into shares of the company to promoter group and VFSI Holdings Pte. Ltd, an affiliate of Värde Investment Partners LP.
The funds raised would be utilized for long-term resources, for general corporate purposes, and to fund growth as well as to reduce debt, the company said in a statement.
The shares and/or warrants will be issued at a price of ₹62 apiece based on Sebi (Securities and Exchange Board of India) regulations, the company added.
On Friday, shares of Reliance Infra closed at ₹69.85 apiece on the BSE.
“The above shall be subject to all requisite permissions, sanctions and approvals as may be necessary," the statement said.
RInfra is an infrastructure company involved with developing projects through various special purpose vehicles (SPVs) in several high growth sectors such as power, roads and metro rail in the infrastructure space and the defence sector.
RInfra is a provider of engineering and construction (E&C) services for developing power, infrastructure, metro and road projects.
RInfra, through its SPVs, has executed a portfolio of infrastructure projects such as a metro rail project in Mumbai on build, own, operate and transfer (BOOT) basis; nine road projects on build, operate and transfer (BOT) basis.
RInfra also has a presence in the power distribution business in Delhi. The promoters will invest ₹400 crore as part of this investment, and Varde will invest ₹150 crore, the company said. Following the investment, the promoters will hold 23% in the company, Varde will own 7%, while 70% will be held by public investors.
RInfra has been looking to monetize its assets to reduce its debt. In January, it closed the sale of its Delhi Agra toll road project to private equity investor I Squared Capital’s Indian roads platform Cube Highways for an enterprise value of ₹3,600 crore.
