RInfra to raise Rs 3,000 crore via rights issue

Mumbai, May 15 (IANS): Reliance Infrastructure (RInfra) on Monday said that its Board has approved a plan to raise up to Rs 3,000 crore via "Rights Issue to the existing shareholders and/or through Qualified Institutions Placement".

As per a BSE filing, RInfra's Board approved the plan to strengthen the company's net worth, capital adequacy and enhance its ability to avail non-funded lines of credit including bank guarantees, as per the norms of the EPC (Engineering, Procurement, Construction) business.

"Accordingly, the Board approved the company augmenting long term resources by issue of equity shares by way of Rights Issue to the existing shareholders and or through Qualified Institutions Placement, for an amount up to Rs 3,000 crore," the filing said.

"The Board constituted a Committee of Directors in this behalf to decide the mode of issue, issue price, timing of issue and all other related matters."

Besides, the BSE filing said that the Board noted the "company's focus on 'asset light' and 'high growth' EPC business, with intent to substantially increase its EPC order book to be one of the leaders in complex large EPC projects".

Recently, the company has won EPC projects like the Rs 7,000-crore Versova-Bandra Sea Link Project, Rs 3,647-crore Uppur Thermal Power Project and the Rs 2,763-crore Road Projects from the National Highways Authority of India.