Reliance Infrastructure to raise 43 Billion

By siliconindia   |   Tuesday, 26 May 2009, 22:57 IST
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Reliance Infrastructure to raise 43 Billion
Bangalore: Reliance Infrastructure said that it would raise 43 billion rupees by issuing 42.9 million convertible warrants to its promoters - Anil Dhirubhai Ambani Group. This move would amplify its founders' stake in the company to 48 percent from 38 percent. The board of directors has approved the issue of warrants to the promoters at a price of 1000 rupees per share, which is nearly 10.8 percent lower the Reliance Infrastructure stock's closing price on BSE on Friday. The issue would raise the gross of the company, gearing its ability to qualify for large road, power, rail and port projects. The company said that the Life Insurance Corporation, and other insurance firms, which have a together 20 percent stake will be offered an opportunity to participate in the proposed warrant issue on the same terms and conditions. "We have a great sense of excitement at the unprecedented opportunities unfolding before Reliance Infrastructure, in high growth areas of power and infrastructure development," Chairman Anil Ambani said in a statement. The company had cancelled 43 million warrants issued to the founders in January 2008 and convertible into shares at 1,822.08 rupees per share before July 19. Adding to it, the company said that the upfront payment of 7.83 billion rupees on the warrants will accrue to the firm's reserves.

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