Reliance Infrastructure shares in news today as board gives nod to fund raising

Shares of Reliance Infrastructure are in news today after the firm said its board has approved raising of Rs 3,014.4 crore through a preferential issue of up to 12.56 crore equity shares at an issue price of Rs 240 apiece.

The Board also approved seeking enabling authorisation from the shareholders to raise up to Rs 3,000 crore by making a Qualified Institutional Placement (QIP).

The Preferential Issue proceeds will be utilised for Expansion of Business Operations directly and/or through investment in subsidiaries and joint ventures including meeting the long-term working capital requirements and for general corporate purposes.

Shares of Reliance Infrastructure ended on a flat note on Thursday at Rs 284.75 on BSE. Market cap of the firm stood at Rs 11,279 crore. 

Reliance Infrastructure shares have a one-year beta of 1.3, indicating high volatility during the period. In terms of technicals, the relative strength index (RSI) of Reliance Infrastructure stands at 77.2, signaling it's trading neither in the overbought nor in the oversold zone. Reliance Infrastructure shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.    

The preferential issue will be made to promoter group entity Risee Infinity Private Limited and other non-promoter entities Florintree Innovation LLP, Fortune Financial & Equities Services Private Limited, the company said in a regulatory filing, adding that the issue will result in enhancing the promoter’s equity stake.

Earlier this week, the Anil Ambani-led firm said it has reduced its standalone external debt from Rs 3,831 crore to Rs 475 crore. Consequently, the net worth of the company will stand at Rs 9,041 crore.

"Invent Assets Securitisation and Reconstruction Private Limited, a lender to the company, has novated certain charged securities to recover its dues. As a result, Invent ARC's entire fund based outstanding amount has been reduced to zero. Additionally, Reliance Infra has cleared its funded outstanding dues to Life Insurance Corporation of India, Edelweiss Asset Reconstruction Company Limited, ICICI Bank, Union Bank, and other lenders," said Reliance Infra in a communication to bourses.