e-commerce in Bangladesh

Sunday, May 24, 2009

Reliance Infrastructure decides to sell preferential shares to raise $913 million

On May 24, 2009, Reliance Infrastructure of Anil Dhirubhai Ambani Group, approved to issue 43 million preferential shares to raise funds about $913. The shares will be issued to the founders of the company and other investors. This would increase the networth of Reliance Infrastructure to Rs. 160 billion and increase its borrowing capabilities to Rs.320 billion at a debt equity ratio of 2:1 enhancing the company’s capability to take up bigger infrastructure building project. Currently, waiting for approval, the shares will worth Rs. 1000 each. The Hindu reports:

As per current guidelines of the market regulator, Reliance Infrastructure will receive 25 per cent of the amount on allotment through an upfront payment of around Rs.1,075 crore ($228 million), and the balance upon conversion.

The board has also approved cancellation of 43 million equity warrants issued Jan 20, 2008 to the promoters.

The upfront payment of Rs.783 crore made by the promoters against those warrants has accrued directly to the company's reserves, the statement added.

Post upfront payment, the effect purchase cost of each share would be Rs. 1,183 each. This will further increase promoter group’s holding from 38% to 48%.

Though economic slowdown dented India’s economic growth but did not stop it. Already banks are observing a growth in loans and many companies are reaching out for expansion. In order to keep up the growth India requires better infrastructure. Reliance Infrastructure is now cashing in on this economic growth.


Related articles:

Times of India

No comments:

Post a Comment

Facebook

Sitemeter