Anil Ambani’s Reliance Infrastructure raises capital of Rs 550cr

Anil Ambani’s Reliance Infrastructure (formerly Reliance Energy Limited) has raised INR 550.56 crore ($74 million) by means of issuing securities on a preferential basis.

In this connection, Reliance Infrastructure issued 8.88 crore warrants convertible into an equivalent number of equity shares of the company. These were issued at a price of INR 62 per warrant to Risee Infinity, a promoter group company, and VFSI Holdings, an affiliate of Varde Investment Partners.

After the preferential allotment, the holding of the promoter group in Reliance Infrastructure will move up to 22.06% following the full conversion of warrants.

Anil Ambani’s Reliance Infrastructure raises capital of Rs 550cr. Photo courtesy of Sourav Mishra/Wikimedia Commons.

According to the Indian infrastructure company, an amount equivalent to 25% of the issue price was paid on subscription and allotment of each warrant. The remaining 75% will be payable to Reliance Infrastructure by the warrant holders on the exercise of the right attached to warrants.

Last month, Reliance Infrastructure announced that its board of directors approved the subscription of preferential issue of up to 59.5 crore equity shares and up to 73 crore warrants convertible into an equivalent number of equity shares of Reliance Power by converting outstanding debt, which includes interest totaling INR 1,325 crore.