R-Infra to allot shares worth Rs 4,000 cr to promoter

Anil Ambani group firm Reliance Infrastructure on Thursdaysaid it will consider allotment of shares on Friday, estimated to be worthabout Rs 4,000 crore, to a promoter entity.

The shares will be allotted pursuant to the promoter group entity AAA ProjectVentures exercising option to convert the warrants allotted to them in July2009.

In a regulatory filing to the Bombay Stock Exchange, R-Infra said its Committeeof Directors (Allotment) will meet on January 7 to consider allotment at aprice of Rs 928.89 per share to AAA Project Ventures pursuant to warrantconversion by them.

The conversion price is considerably above the current market price of R-Infrashares, which were trading 1.5 per cent up at Rs 869.45 in afternoon trade.

In June 2009, shareholders of the company had approved issue of warrants to thepromoter entity. Thereafter, the company allotted 4.29 crore warrants to AAAProject Ventures, which were convertible into equivalent number of equityshares at a price of Rs 928.89 per share.

The warrants carried option to be converted into shares at any time afterOctober 9, 2009, but not after 18 months from the date of allotment ofwarrants, the company had said at that time.

The infrastructure arm of Anil Ambani group saw its net profit rising to Rs1,519.39 crore for the year ended March 31, compared to Rs 1,353.23 crore forthe previous year.

Its total income rose from Rs 13,596.44 crore in the year ended March 31, 2009to Rs 15,689.67 crore for the year ended March 31, 2010.