Monday, May 25, 2009

Reliance Anil Dhirubhai Ambani Provide In Infra Equity Shares - May 25, 2009

The Board of Directors of Reliance Infrastructure Limited (Rel Infra) approved a proposal for new equity share capital infusion of approximately Rs. 4,300 crore (US$ 913 Mn) into the Company. The equity share capital will substantially enhance Rel Infra''s net worth to over Rs. 16,000 crore, and further augment Its borrowing capabilities to Rs. 32,000 crore at even a debt:
equlty ratio of 2:1, thereby enabling greater participation in mega growth opportunities in high growth infrastructure areas, thereby generating superior returns for its over 1.6 million shareholders,

Commenting on the development, Shri Anil Dhirubhai Ambani, Chairman, Reliance Infrastructure Ltd., said, "We have a great sense of excitement at the unprecedented opportunities unfolding before Reliance Infrastructure, in high growth areas of power and infrastructure development. The new equity share capital infusion reflects our strong confidence in future growth prospects of the Company."

The new equity share capital infusion is proposed through a preferential offer of warrants to be converted into 42.9 mn equity shares, to the promoters, Reliance Anil Dhirubhai Ambani Group. Life Insurance Corporation, and other insurance companies, who have been long-term shareholders of the Company over the past several decades and who collectively hold approx. 20% of equity share, will be provided an opportunity to participate in the proposed offering, on the same terms and conditions.

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