Shares of Reliance Infrastructure gained over 4% amid weak market today after the Anil Ambani-led firm said its board has approved a proposal to raise Rs 2,930 crore by issuing unsecured foreign currency convertible bonds (FCCBs) to VFSI Holdings.
Reliance Infrastructure shares rose 4.10% to Rs 345.80 against the previous close of Rs 332.15 on BSE. Market cap of the firm climbed to Rs 13,436.77 crore.
Reliance Infrastructure shares have a one-year beta of 1.4, indicating high volatility during the period. In terms of technicals, the relative strength index (RSI) of Reliance Infrastructure stands at 75.7, signaling it's trading in the overbought zone. Reliance Infrastructure shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
In a regulatory filing, the company said FCCBs will be unsecured and will have ultra-low cost interest of 5% per annum with a long maturity of 10 years.
"The Board of Directors of Reliance Infrastructure Limited (Reliance Infrastructure) at its meeting held today has approved raising of funds up to $350 million (Rs 2,930 crore) to VFSI Holdings Pte Limited, an affiliate of Varde Investment Partners, LP, a leading global alternative investment firm," it added.
The board of Reliance Infrastructure board also cleared the Employees Stock Option Scheme (ESOS) for all employees of the company.
"ESOS to provide a grant of up to 2.60 crore equity shares of value of over Rs 850 crore - representing 5% of fully diluted capital," it said, adding that ESOS will unlock the employee earning potential in alignment with the company's performance and growth.