Reliance Infra up 3% as Anil Ambani firm allots Rs 300 crore shares to promoter entity

ADAG stock: Shares of Anil Ambani-promoted Reliance Infrastructure Ltd climbed 3 per cent in Wednesday's trade after the ADAG group company said it has allotted 1.25 crore fully paid-up equity shares of Rs 10 each to a promoter group entity Risee Infinity Private Limited, upon exercise of right attached to the warrants along with payment made of the balance 75 per cent of issue price.

Risee Infinity Private Limited    held 6,46,00,000 shares or 16.31 per cent stake in Reliance Infra at the end of March quarter. The fresh equity shares are issued at a price of Rs 240 per share (including a premium of Rs 230/- per share), aggregating Rs 300 crore.

Following the development, the stock rose 2.8 per cent to hit a high of Rs 378 apiece on BSE. The multibagger stock has climbed 122.68 per cent from its 52-week low of Rs 169.75 hit in July last year. 

In a filing to stock exchanges BSE and NSE, Reliance Infrastructure said it allotted 1.25 crore fully paid-up equity shares at a price of Rs 240 per share (including a premium of Rs 230 per share), aggregating Rs 300 crore, following the accelerated conversion of warrants.

In October 2024, the company had issued 12.56 crore warrants on a preferential basis, aggregating Rs 3,014.40 crore, in accordance with SEBI (ICDR) Regulations. As per the terms, 25 per cent of the total amount was paid upfront, with the remaining 75 per cent payable within 18 months. Each fully paid warrant is convertible into one equity share.

Through this accelerated conversion, Reliance Infra has issued 1.25 crore equity shares to Risee Infinity Private Limited, a Promoter Group entity.

This capital infusion is expected to strengthen the company’s financial position and support its growth trajectory. It may enhance financial flexibility and positions Reliance Infra to seize emerging opportunities, driving sustainable growth and long-term value creation, the company said.

Reliance Infrastructure is one of the largest infrastructure companies in India, executing projects through various Special Purpose Vehicles (SPVs) across several high-growth sectors, including Power, Roads, Metro Rail, and Defence.

The company is a provider of Engineering and Construction (E&C) services, specializing in the development of power infrastructure, metro rail systems, and road projects.

Reliance Infrastructure, through its Special Purpose Vehicles (SPVs), has executed a diverse portfolio of infrastructure projects, including the Mumbai Metro project developed on a Build, Own, Operate and Transfer (BOOT) basis, and several road projects under the Build, Operate and Transfer (BOT) model.

In addition to infrastructure development, Reliance Infrastructure is also a leading utility company with a significant presence in power distribution.