Search: Look for:   Last 1 Month   Last 6 Months   All time

Reliance Infrastructure to raise Rs.4,300 crore

National,Business, Sun, 24 May 2009 IANS

New Delhi, May 24 (IANS) The board of Reliance Infrastructure, promoted by the Anil Ambani group, Sunday approved issuing up to 43 million preferential shares to its founders and other investors to raise about Rs.4,300 crore ($913 million).

 

In a statement, the company said the equity capital would enhance its net worth to over Rs.16,000 crore and augment its borrowing capabilities to Rs.32,000 crore at a debt-equity ratio of 2:1.

 

 

It would also enable the company to participate in a bigger way in infrastructure projects, the statement said.

 

 

'The new equity capital infusion reflects our strong confidence in future growth prospects of the company,' said company chairman Anil Ambani.

 

 

The new equity capital infusion is proposed through a preferential offer of warrants to be converted into 42.9 million equity shares to the promoters.

 

 

The preferential offer, subject to necessary approvals from shareholders, will be made at Rs.1,000 per share.

 

 

As per current guidelines of the market regulator, Reliance Infrastructure will receive 25 percent of the amount on allotment through an upfront payment of around Rs.1,075 crore ($228 million), and the balance upon conversion.

 

 

The board has also approved cancellation of 43 million equity warrants issued Jan 20, 2008 to the promoters.

 

 

The upfront payment of Rs.783 crore made by the promoters against those warrants has accrued directly to the company's reserves, the statement added.

 

 

The effective purchase cost to the promoters, after taking into account the upfront payment of Rs.783 crore, works out to about Rs.1,183 per share - representing a premium of 83 percent on the average price during the preceding three months, it added.

 

 

As a result of the new equity capital infusion, the promoter group's holding will increase from 38 percent to 48 percent.

 

 

Reliance Infrastructure said it was developing 11 infrastructure projects worth Rs.12,800 crore.

 


Read More: Delhi

LATEST IMAGES
Manohar Lal being presented with a memento
Manoj Tiwari BJP Relief meets the family members of late Ankit Sharma
Haryana CM Manohar Lal congratulate former Deputy PM Lal Krishna Advani on his 92nd birthday
King of Bhutan, the Bhutan Queen and Crown Prince meeting the PM Modi
PM Narendra Modi welcomes the King of Bhutan
Post comments:
Your Name (*) :
Your Email :
Your Phone :
Your Comment (*):
  Reload Image
 
 

Comments:


 

OTHER TOP STORIES


Excellent Hair Fall Treatment
Careers | Privacy Policy | Feedback | About Us | Contact Us | | Latest News
Copyright © 2015 NEWS TRACK India All rights reserved.