Promoters set to infuse Rs 4,300 cr into Reliance Infra | business | Hindustan Times
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Promoters set to infuse Rs 4,300 cr into Reliance Infra

The board of Anil Ambani-controlled Rel Infra approved a proposal for new equity capital infusion of around $913 million into the company by the promoters, which would give its net worth a big boost and significantly increase its borrowing muscle to fuel expansion in areas like ports, roads and power transmission.

business Updated: May 24, 2009 21:39 IST
HT Correspondent

The board of Anil Ambani-controlled Reliance Infrastructure Limited (Rel Infra) on Sunday approved a proposal for new equity capital infusion of around Rs 4,300 crore ($913 million) into the company by the promoters, which would give its net worth a big boost and significantly increase its borrowing muscle to fuel expansion in areas like ports, roads and power transmission.

The infusion, proposed at around Rs 1,000 per share, will be through a preferential offer of warrants to be converted into 42.9 million equity shares, to the promoters — Reliance Anil Dhirubhai Ambani Group — whose stake will rise to 48 per cent from the current 38 per cent. The net worth will rise 34 per cent to Rs 16,000 crore from Rs 11,907 crore.

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

Life Insurance Corp and other insurers who collectively hold 20 per cent will be given a chance to take part in the offer, which needs shareholder approval.