Promoters to pump in Rs 1600 cr in Reliance Infra
Jan. 6: Promoters will hike their stake in the ADAG firm Reliance Infrastructure to 48 per cent pursuant to the conversion of warrants allotted to them into equity shares for Rs 1,600 crore.
In a regulatory filing to the BSE, the company said that it will on Friday consider the allotment of shares to promoter group entity AAA Project Ventures Pvt Ltd, following the conversion of warrants issued to them in July 2009 at a price of `928.89 per share.
AAA Project Ventures had allotted at that time a total of 4.29 crore warrants, convertible into equal amount of shares at Rs 928.89, resulting into a total price of about Rs 4,000 crore.
Out of this, over half the warrants have been converted into shares and the shares would be allotted for remaining warrants for an estimated Rs 1,600 crore after Friday’s meeting of the board committee on allotments, sources said. Pursuant to the share allotment, the promoters’ holding will increase to 48 per cent, sources added. The promoters held about 43 per cent stake at the end of September 2010.
In the regulatory filing, R-Infra said its committee of directors (allotment) will meet on January 7 to consider allotment at a price of Rs 928.89 per share to AAA Project Ventures pursuant to warrant conversion by them.
The conversion price is considerably above the current market price of R-Infra shares, which were trading 1.5 per cent up at Rs 869.45 in the afternoon trade. In June 2009, shareholders of the company had approved issue of warrants to the promoter entity.
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