Reliance Infrastructure has announced that its Board of Directors has approved a preferential issue of equity shares amounting to Rs.3,014.4 crore. This will involve issuing up to 12.56 crore shares or convertible warrants at an issue price of Rs.240 per share. The preferential issue will be directed to Risee Infinity Private Limited, a company within the promoter group, along with other investors such as Florintree Innovation LLP and Fortune Financial & Equities Services Private Limited.

This strategic move is aimed at increasing the equity stake of the promoters in the company. The company's statement, filed with the stock exchange, underscores that the funds raised from this share issuance will be allocated to expand business operations. This includes making investments in subsidiaries and joint ventures, meeting long-term working capital needs, and general corporate purposes.

The share issue follows an earlier announcement made by Reliance Infrastructure on September 19, 2024, indicating that it would explore a preferential share issuance to raise new capital. However, at the time, the exact amount to be raised was not disclosed.

Reliance Infra stated that the proceeds from the preferential issue will be utilized for business expansion, including investments in subsidiaries and joint ventures, as well as for meeting long-term working capital needs and general corporate purposes.

The company also mentioned that the preferential issue would increase its net worth from over Rs.9,000 crore to more than Rs.12,000 crore. A postal ballot notice will be sent to shareholders to obtain approval for these plans.

Reliance Infrastructure's prior Funding roundfundraising initiative involved raising Rs.550 crore through a similar preferential issuance in July 2021. During that round, promoters invested Rs.400 crore, while Värde Capital Partners contributed Rs.150 crore.

The company's shares ended Thursday nearly unchanged, closing at Rs.282.80.