Anil Ambani-led Reliance Group's Rs 17,600 crore fundraise to drive future growth plans

Equipped with Rs 17,600 crore fundraising and a zero-debt status, Anil Ambani's Reliance Group companies - Reliance Infrastructure Ltd and Reliance Power Ltd - are poised to execute their maturation strategies, according to officials.

In the past 2 weeks, some companies person announced raising Rs 4,500 crore done preferential issues of equity shares and Rs 7,100 crore from renowned planetary concern money Varde Partners done equity-linked semipermanent FCCBs, having a agelong maturity play of 10 years and debased involvement complaint of 5 per cent.

An further Rs 6,000 crore volition beryllium raised done qualified organization placement (QIP), with Reliance Power and Reliance Infrastructure each aiming for Rs 3,000 crore.

With resolutions successful place, shareholder approvals are expected by the extremity of the month, officials said.

A elder authoritative of the radical stated that Reliance Group's strategy of raising superior done equity oregon equity-linked semipermanent bonds volition connection the radical companies indispensable maturation superior for their enlargement plans.

Even with a blimpish debt-to-equity ratio of 70:30, raising implicit Rs 17,000 crore successful equity oregon equity-linked bonds volition supply the radical companies with a full concern outlay of Rs 50,000 crore for their aboriginal concern plans implicit the adjacent fewer years.

The fundraising volition besides boost the nett worthy of some companies to astir Rs 25,000 crore.

According to banal speech disclosures, some companies are raising Rs 4,500 crore done preferential issues of equity shares. Of this, Rs 1,750 crore volition beryllium invested by the promoters, portion the remaining Rs 3,750 crore is being contributed by 4 large investors -- Fortune Financial & Equities Services, Florintree Innovations LLP, Authum Investment and Infrastructure, and Sanatan Financial Advisory.

In addition, Varde Partners is investing Rs 7,100 crore, done equity-linked overseas currency convertible bonds (FCCB). These equity-linked FCCBs person a agelong maturity play of 10 years and a debased involvement complaint of 5 per cent.

These fundraising plans bespeak that the fiscal maturation engines successful some companies are successful place, the officials added.