Reliance Infrastructure shares fell five percent on Wednesday after the company said its shareholders approved raising up to Rs 550.56 crore via a preferential issue to promoters and Varde Investment Partners.
The stock was up around 10 percent in the last month, while it has jumped 198 percent YTD.
In a regulatory filing on Wednesday, the company said, “The shareholders of Reliance Infrastructure Limited, through postal ballot, have approved the raising of funds up to Rs 550.56 crore by preferential allotment of up to Rs 8.88 crore equity shares and/or warrants convertible into an equivalent number of equity shares of the Company to promoters and VFSI Holdings PTE. Limited, an affiliate of Värde Investment Partners, LP.”
Additionally, the company’s shareholders also approved the raising of funds by issue of Foreign Currency Convertible Bonds.
“The shareholders of Reliance Infra have also approved the raising of funds by issue of Foreign Currency Convertible Bonds (FCCB) up to 24 percent of the fully diluted equity share capital of the Company,” Reliance Infrastructure said.
The funds raised would be utilised for long-term resources, for general corporate purposes and to fund future growth, the company added.
At 11:10 am, the shares of Reliance Infrastructure were trading 2.44 percent lower at Rs 80.00 apiece on the BSE.
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