RInfra board approves proposal to raise Rs 2,930 crore through FCCBs | Company News
The board of directors at Reliance Infrastructure (RInfra) on Tuesday approved raising funds up to $350 million (Rs 2,930 crore). The company said it will issue Foreign Currency Convertible Bonds (FCCBs) to VFSI Holdings Private Limited, an affiliate of Värde Investment Partners, LP, a global alternative investment firm.
Up to 350 FCCBs of $1 million each, aggregating $350 million, are proposed to be issued and will remain unlisted.
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The FCCBs will be unsecured and will have an “ultra-low cost coupon of five per cent per annum with a maturity period of 10 years.” The FCCBs will be convertible into equity shares at ₹330 per share, as per the company’s stock exchange filing.
In the Tuesday meeting, the board also “approved an Employee Stock Option Scheme (ESOS) for all employees of the company and its subsidiaries. ESOS provides for the grant of up to 26 million fully paid-up equity shares of ₹10 each, representing approximately five per cent of the company’s fully diluted capital.”
The approved fundraise is in addition to a preferential issue worth Rs 3,014 crore and a qualified institutional placement (QIP) of Rs 3,000 crore, which the company announced on September 19.
Earlier, on September 18, the company announced a reduction in its standalone external debt to Rs 475 crore, down from Rs 3,831 crore.
A week ago, Rosa Power, a subsidiary of Reliance Power, said it had prepaid Rs 850 crore of debt to Singapore-based lender Varde Partners as part of its efforts to clear liabilities ahead of schedule.
The company’s total market capitalisation stands at around Rs 13,111.94 crore. Its shares closed at Rs 332.15 on the Bombay Stock Exchange (BSE).
First Published: Oct 01 2024 | 7:24 PM IST
