Anil Ambani-owned Reliance Infrastructure’s board on Tuesday approved to raise Rs 2,930 crore ($350 million) through ultra-low cost of 5 per cent per annum coupon, 10 years long maturity Unsecured Foreign Currency Convertible Bonds (FCCBs).
FCCBs will be issued on a private placement basis to VFSI Holding Pte Limited, an affiliate of Varde Investment Partners, LP affiliate – a leading Global Alternative Investment Firm.
The company also approved the Employees Stock Option Scheme (ESOS) for all employees of the company. ESOS will provide grant of up to 2.60 crore Equity shares of value of over Rs 850 crore – representing 5 per cent of fully diluted capital.
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“The ESOS will unlock the employee earning potential, in alignment to the Company’s performance and growth. The ESOS shall be in accordance with the applicable SEBI Regulations and subject to the approval of the members of the Company,” the company said.
In addition, the company has appointed Dr Thomas Mathew as an Additional Director in the capacity of Independent Director on the Board of the company with immediate effect.
Shares of Reliance Infra surged over 60 per cent in September 2024 on the back of positive investor sentiment following positive developments including the company’s focus on debt restructuring, financial stability and reversing past underperformance.
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Last week, the company announced a Rs 780 crore victory in an arbitration dispute against Damodar Valley Corporation.
Reliance Infra is significantly expanding into high-growth sectors and reducing its debt burden, which has decreased from Rs 3,831 crore to Rs 475 crore. Recently, the company cleared outstanding dues to major lenders, including Life Insurance Corporation of India, and ICICI Bank.
Last week, 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.
RInfra is looking to raise up to Rs 6,014 crore through sales of shares and convertible warrants.
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