New Delhi, May 25: The board of Reliance Infrastructure on Sunday, May 24 has approved an infusion of Rs 4,300 crore by its promoters, boosting its net worth and bolstering its ability to borrow money for projects.
The company approved issuing up to 43 million preferential shares to its founders and other investors to raise about Rs.4,300 crore ($913 million).
Following a board meeting the Reliance-Anil Dhirubhai Ambani Group (R-Adag) sanctioned the issue of warrants to the promoters at around Rs 1,000 each.The price is 11 per cent below the stock's closing price on Friday, May 22.
Enabling the company to participate in the infrastructure projects, the move will enhance its net worth to over Rs 16,000 crore and augment its borrowing capabilities to Rs 32,000 crore at a debt-equity ratio of 2:1.
"The new equity capital infusion reflects our strong confidence in future growth prospects of the company," said company chairman Anil Ambani.