Reliance Infrastructure's (RInfra) board of directors authorized a USD 350 million (Rs 2,930 crore) capital raise on Tuesday. The company announced that it will offer Foreign Currency Convertible Bonds (FCCBs) to VFSI Holdings Private Limited, an affiliate of Värde Investment Partners, LP, a worldwide alternative investment organization. Up to 350 FCCBs worth USD 1 million each, totaling $350 million, are intended to be issued and will remain unlisted.
The FCCBs will be unsecured and feature a "ultra-low cost coupon of 5% per annum with a 10-year maturity period." The FCCBs will be converted into equity shares at ₹330 per share, according to the company's stock market filing.
During the Tuesday meeting, the board "approved an Employee Stock Option Scheme (ESOS) for all employees of the company and its subsidiaries." ESOS allows for the issuance of up to 26 million fully paid-up equity shares for ₹10 apiece, accounting for about 5% of the company's fully diluted capital.
The authorized fundraising is in addition to a preferential issuance of Rs 3,014 crore and a qualified institutional placement (QIP) of Rs 3,000 crore, which were disclosed on September 19. Previously, on September 18, the business declared a drop in its standalone external debt to Rs 475 crore, from Rs 3,831 crore.
Rosa Power, a subsidiary of Reliance Power, said a week ago that it has prepaid Rs 850 crore in debt to Singapore-based lender Varde Partners as part of its attempts to pay off bills ahead of time. The company's entire market value is about Rs 13,111.94 crore. Its stock finished at Rs 332.15 on the Bombay Stock Exchange (BSE).
