Reliance Infrastructure plans fundraising initiative through equity, debt instruments

Synopsis

Reliance Infrastructure aims to bolster its financial standing. The company will raise long-term capital through various financial instruments. A board meeting is scheduled for July 16, 2025, to discuss the capital raising strategy. This includes equity shares, equity-linked securities, and Non-Convertible Debentures. The company is targeting institutional investors. This announcement precedes the Q1 FY2026 financial results.

Reliance Infrastructure Limited has announced plans to raise long-term capital through multiple financial instruments, signaling a significant fundraising initiative as the company seeks to strengthen its financial position and fuel growth plans.

The Mumbai-based infrastructure company has called a Board of Directors meeting for Wednesday, July 16, 2025, to deliberate on a comprehensive capital raising strategy. According to the filing, the meeting will "consider and approve raising of long term resources by issue of equity shares / equity linked securities, by way of qualified institutional placement or any other method and/or Non-Convertible Debentures (NCDs), in one or more tranches/series, as may be permissible under applicable laws."

The company is exploring several fundraising mechanisms including direct equity share issuance, equity-linked securities through qualified institutional placement methods, and Non-Convertible Debentures structured across multiple tranches and series. The filing indicates that the board will also be "seeking members' and other approval(s), as the Board may deem appropriate," suggesting that depending on the scale and nature of the fundraising, shareholder approval through special resolutions may be required.

The choice of qualified institutional placement as one of the methods suggests the company is targeting institutional investors, which typically indicates confidence in the company's fundamentals and growth prospects.

The timing of this announcement is significant as it comes ahead of the Q1 FY2026 financial results, which will provide investors with insights into the company's current financial performance and justify the need for additional capital.

The company's stock performance and investor response will likely depend on the clarity and attractiveness of the fundraising terms once announced.

Earlier in the week, the company announced that its credit rating has been upgraded by three notches by India Ratings and Research which has assigned it 'IND B/Stable/IND A4' rating from an earlier rating of ‘IND D’.

Reliance Infra shares have been in top form for the last one year, jumping by 97% during this period. In this year so far its returns have been to the tune of 18%, significantly higher than the headline indices Nifty and Sensex. Both Nifty and Sensex have seen an uptick of slightly over 3%.

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