Anil Ambani-Led Reliance Power and Reliance Infra Secure INR 17,600 Cr; Plan INR 6,000 Cr QIP to Bolster Financial Strength The long-term bonds issued by Reliance Group, which are raised through stock or equity-linked bonds, will provide the group companies with the growth capital they need to pursue their expansion goals.
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Reliance Infrastructure Ltd and Reliance Power Ltd, led by Anil Ambani, are gearing up to execute their growth strategies with INR 17,600 crore in fundraising and a zero-debt status, according to company officials.
Over the past two weeks, the companies have secured INR 4,500 crore through preferential equity issues and an additional INR 7,100 crore from global investment fund Varde Partners via equity-linked foreign currency convertible bonds (FCCBs). These bonds carry a 10-year maturity period with a low 5% interest rate.
To further strengthen their financial position, Reliance Infrastructure and Reliance Power plan to raise INR 6,000 crore through qualified institutional placements (QIP), with each company targeting INR 3,000 crore.
Shareholder approvals for these resolutions are expected by the end of the month, marking a critical step in the companies' expansion plans.
A senior group official highlighted the strategic focus on raising capital through equity or equity-linked long-term bonds, which will provide essential growth capital. The official noted that even with a conservative debt-to-equity ratio of 70:30, the INR 17,600 crore raised will enable the companies to secure a total investment outlay of INR 50,000 crore for their future business endeavors.
As per stock exchange disclosures, INR 1,750 crore of the INR 4,500 crore raised through preferential equity issues will come from the promoters, while the remaining INR 3,750 crore is being invested by four major entities: Fortune Financial & Equities Services, Florintree Innovations LLP, Authum Investment and Infrastructure, and Sanatan Financial Advisory.
With these fundraising efforts, Reliance Group is well-positioned to boost the net worth of both companies to around INR 25,000 crore, signaling robust financial growth ahead.
