Reliance Infra share: Anil Ambani-owned stock jumps 6% on fundraise buzz

  • Stocks in focus: Anil Ambani's Reliance Infrastructure shares witnessed strong buying interest during early morning deals on Tuesday

Shivangini
Updated17 Sep 2024, 12:29 PM IST
Trade Now
Reliance Infra share: Anil Ambani-owned company has scheduled a board meeting to discuss potential capital raising options.
Reliance Infra share: Anil Ambani-owned company has scheduled a board meeting to discuss potential capital raising options.(Photo: Pixabay)

Stocks market today: Anil Ambani-owned Reliance Infrastructure share price jumped 6 per cent during the early trading session on September 17 following speculation about upcoming fundraising activities.

The surge follows an official announcement regarding a scheduled board meeting to discuss potential capital raising options, as per an exchange filing.

Reliance Infrastructure's share price was trading in the green, up 5.45 percent, at 227.50 on September 17, at 12:11 pm, on BSE. It hit a 52-week high on 4 April 2024, at 308.00, which is 25 percent over the current last traded price (LTP).

Recently, the Securities and Exchange Board of India (SEBI) has taken strict action against prominent businessman Anil Ambani. The market regulator has imposed financial penalties and enacted a five-year prohibition on Ambani's participation in capital market activities. These measures stem from an investigation into alleged improper fund transfers.

Reliance Infrastructure announced on September 16 that its board will meet on September 19, 2024, to explore various fundraising avenues.

Anil Ambani's shareholding in Reliance Infrastructure

Anil Ambani holds 1,39,437, Reliance Infrastructure shares which is around 0.04 per cent of the total paid-up capital of the company.

As part of the Promoter Group Kokila D. Ambani, mother of Anil Ambani holds the largest stake among the individual family members with 2,74,937 shares, representing 0.07 per cent of company's total shares. Tina Ambani, Anil Ambani's wife, holds 1,23,812 shares (0.03 per cent). Jai Anmol Ambani, the eldest son of Anil Ambani, owns 1,25,231 shares (0.03 per cent). Interestingly, Jai Anshul Ambani. Interestingly Jai Anshul Ambani, the youngest son holds only 7 shares, which rounds to 0.00% of the total.

Reliance Infrastructure fundraise plan

The company is considering various ways to raise funds, including:

- Issuing new shares

- Issuing securities that can be converted into shares

- Offering warrants that can be converted into shares

- Preferential issue (offering shares to specific investors)

- Qualified institutional placement (selling shares to qualified institutional buyers)

- Rights issue (offering new shares to existing shareholders)

- Other potential methods

Also Read | Stocks to Watch: Reliance Infra, JK Tyre, Vedanta, Adani Wilmar, and more

The board meeting will also include the issuance of equity shares, convertible warrants, and other equity-linked securities. The methods under consideration range from preferential issues to qualified institutional placements and rights issues.

Also Read | Anil Ambani’s Reliance Infra eyes EV foray, plans to make cars & batteries

"Pursuant to Regulation 29 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations'), we wish to inform you that a meeting of the Board of Directors of the Company has been convened on Thursday, September 19, 2024, inter alia, to consider and approve raising of long term resources from domestic and/or global markets, inter alia, by issue of equity shares/equity-linked securities/ warrants convertible into equity shares, by way of preferential issue and/ or qualified institutional placement and/or rights issue or any other method including determination of issue price, if any and seeking members' and other approval(s), as the Board may deem appropriate," the company announced in an exchange filing.

Also Read | Latest Market News Today Live Updates September 17, 2024: Reliance Infra share: Anil Ambani-owned stock jumps 6% on fundraise buzz

This potential fundraising initiative comes at a time when many infrastructure companies are seeking to strengthen their financial positions amidst challenging market conditions. Investors appear to be responding positively to the news, as evidenced by the sharp rise in the company's stock price.

Meanwhile, the Indian Government over the past three years (FY22-FY24), the government has spent approximately 23 lakh crore on infrastructure, with capital spending as a percentage of GDP rising from 1.6 per cent in 2018-19 to 3.2 per cent in 2023-24.

This may come as a relief as Anil Ambani faces regulatory scrutiny after Sebi imposed a fine and banned him from capital markets for five years due to an alleged fund diversion case.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:17 Sep 2024, 12:29 PM IST
Business NewsMarketsStock MarketsReliance Infra share: Anil Ambani-owned stock jumps 6% on fundraise buzz

Most Active Stocks

Bharat Electronics share price

284.05
02:02 PM | 1 OCT 2024
-1 (-0.35%)

Tata Steel share price

167.80
02:02 PM | 1 OCT 2024
-0.65 (-0.39%)

Tata Power share price

483.10
02:02 PM | 1 OCT 2024
0.4 (0.08%)

Zee Entertainment Enterprises share price

138.40
02:01 PM | 1 OCT 2024
0.75 (0.54%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Kfin Technologies share price

1,116.00
01:51 PM | 1 OCT 2024
92.2 (9.01%)

One 97 Communications share price

738.55
01:51 PM | 1 OCT 2024
50.2 (7.29%)

National Aluminium Company share price

225.65
01:51 PM | 1 OCT 2024
15.25 (7.25%)

Caplin Point Laboratories share price

2,033.60
01:50 PM | 1 OCT 2024
136.05 (7.17%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    77,245.00-160.00
    Chennai
    77,251.00-160.00
    Delhi
    77,403.00-160.00
    Kolkata
    77,255.00-160.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.85/L-0.13
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00

    Popular in Markets

      HomeMarketsPremiumInstant LoanMint Shorts