New Delhi (Anish Yande): Shares of Reliance Infrastructure Limited rose by 4 per cent on Monday’s trading session as the company’s board of directors of Reliance Infra approved raising funds. Reliance Infra shares opened at Rs 73.10 per share rising to an intraday high of Rs 73.25 per share from its previous close of Rs 69.80 per share. The shares of the infrastructure company’s market cap of the company rose to Rs 1,926 crore.
Reliance Infra approves raising funds:
The Board of Directors of Reliance Infrastructure Limited has approved raising funds in the meeting held on June 7. Reliance Infra’s board has approved the raising of funds up to Rs 550.56 crore from its promoters and Varde Investment.
The approved proposal consists of preferential allotment of equity shares to promoters and Varde Investment Partners. The equity shares would be preferentially allocated at a price of Rs 62 each. The sale of shares would follow SEBI (ICDR) regulations.
According to a statement issued by the company, the Board of Directors of Reliance Infrastructure Limited have approved the allotment of up to 8.88 crore equity shares. The shares would be issued to the promoter group and an affiliate of Varde Investment Partners, VFSI Holdings Pte Limited.
Stake of promoters to be reduced following fundraise:
Following the allotment of the shares, Varde Investment’s stake in the company would be reduced to 7 per cent. The stake of promoters would be increased to 23 per cent. The rest of the stake would be retained by the public and its institutions.
Reliance Infrastructure Limited would use the funds for general corporate purposes, growth of fund futures and reducing debt.
The Board of Directors is seeking approval of the company shareholders through postal ballots. The preferential allotment of equity shares would be subject to all required sanctions, permissions, and approvals.
Reliance Infrastructure Limited develops projects through Special Purpose Vehicles in sectors such as power, roads and Metro Rail. The infrastructure company also develops products for the defence sector.
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