Reliance Infrastructure board to consider fresh fundraising, aims to become zero-debt co by next March

The board of directors of Reliance Infrastructure (RInfra)will consider raising fresh funds through various means like issuing equity shares, rights issue and qualified institutional placement, the Anil Ambani-led company has said in a regulatory filing.

The board of directors will meet on Sunday to cosider infusing fresh liquidity, whichwill enhance its financial flexibility and enable it to become a zero-debt company by March next year, it said in thefiling on Wednesday.

The board willconsider thisandany other proposals to raise long-term equity resources.Further details will be announced upon conclusion of the board meeting.

“…We wish to inform you that a meeting of the Board of Directors of the Company will be- held on Sunday, June 6, 2021, to consider and approve raising of long term resources from domestic and/or global markets, inter alia, by issue of equity shares/ equity linked securities/ warrants convertible into equity shares, by way of preferential issue and/ or qualified institutional placement and/or rights issue or any other method including determination of issue price, if any and seeking members’ and other approval(s), as the Board may deem appropriate,” RInfra said in the filing.

“Further, please note that in accordance with the Company's Code of Practices and Procedures and Code of Conduct to Regulate, Monitor and Report Trading In Securities and Fair Disclosure of Unpublished Price Sensitive Information (the “Code’) read with ‘the Securities and Exchange Board Of India (Prohibition Of Insider Trading) . Regulations, 2015, the Trading Window for trading in the securities of the Company for Designated Persons shall remain closed from the close of business hours of Wednesday, June 2, 2021, till 48 hours after the outcome of the Board Meeting are made public in terms of the SEBI | (Listing Obligations and Disclosure Requirements) — Regulations, 2015,” it added.

The promoter group has made the proposal to the board to infuse fresh equity into the company,demonstrating their confidence in the long-term prospects of the company.

RInfra has a track record of over 20 years in execution of projects aggregating over Rs 200,000 crore,andnew opportunities are coming up everyday.

The company already has an Engineering, procurement, and construction (EPC) order book of over Rs 25,000 crore, power distribution business in Delhi serving 45 lakh customers and defence manufacturing business.