Reliance Infra Surges Amid Plans for Debt Reduction and Capital Raise

Reliance Infrastructure Limited has witnessed a remarkable surge in its stock value, recording a 48% climb over four consecutive days. This uptick comes on the heels of the company announcing its intention to significantly reduce its debt levels through a strategic fundraising initiative.

Board Approves Preferential Issue to Raise Capital

The organization's Board of Directors has granted its approval for a substantial capital raise amounting to Rs 3,014 crore. This will be achieved through a preferential issue of shares, which is especially tailored for select investors. This move is aimed at infusing much-needed capital into the company's operations, ensuring financial stability and the ability to pursue growth opportunities.

Potential Qualified Institutional Placement

In a parallel development, Reliance Infrastructure is also contemplating a Qualified Institutional Placement (QIP) that could potentially bring in an additional Rs 3,000 crore. This form of capital raising is carried out by issuing equity shares, fully and partly convertible debentures, or any securities other than warrants that are convertible to equity shares, predominantly to qualified institutional buyers.

Reliance, Infrastructure, Fundraising