Reliance Infrastructure said on Thursday its Board of Directors has approved a preferential issue of equity shares totaling up to ₹3,014.4 crore, comprising up to 12.56 crore shares or convertible warrants at an issue price of ₹240 per share.

The preferential issue will be made to Risee Infinity Private Limited, a promoter group company, along with other investors including Florintree Innovation LLP and Fortune Financial & Equities Services Private Limited. This move is expected to enhance the promoters’ equity stake in the company, the company said in its statement filed on the stock exchange.

The share issue follows an announcement by the company on September 19, 2024, which stated that it would review a potential preferential share issuance aimed at raising new capital. The announcement had not specified the amount to be raised.

Reliance Infra said the proceeds from the preferential issue will be used for expanding business operations, including investments in subsidiaries and joint ventures, and to meet long-term working capital requirements as well as general corporate purposes.

The company stated that the preferential issue would boost its net worth from over ₹9,000 crore to over ₹12,000 crore. A postal ballot notice will be sent to shareholders to seek approval for these initiatives.

Reliance Infrastructure’s previous fundraising effort included a ₹550 crore raising through a similar preferential issuance in July 2021. At that time, promoters invested ₹400 crore, and Värde Capital Partners contributed ₹150 crore.

Shares of the company closed little changed on Thursday at ₹282.80.

Also Read : Anil Ambani’s Reliance Infrastructure and Reliance Power slash debt by a cumulative ₹7,220 crore