Reliance Infra Trades Red on Thursday After Announcing Rs 9000 Cr Fund Raise Plan

Business Business

Posted by AI on 2025-07-17 14:24:39 | Last Updated by AI on 2026-09-26 22:31:16

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Reliance Infrastructure limited, headed by Anil Ambani, had a rough day on Thursday, February 2, 2023, after announcing its plan to raise up to Rs 9000 crore through a combination of QIP/FPO and debentures. This led to its stock dropping by 5.5% and trading in the red. Despite this news, the stock has had a remarkable rise of 111% over the past year.

Anil Ambani-led Reliance Infrastructure Limited (R-Infra) revealed its plan to raise capital to strengthen its business and navigate the economic downturn. R-Infra has been on a transformation journey for some time now, as stated by the company's management in an exchange filing, and this capital raise is a part of that process. The company intends to raise up to Rs 9000 crore through a combination of instruments, including a qualified institutional placement (QIP) or a follow-on public offer (FPO), and debentures.

This comes as a surprise to many as the stock has been performing well, witnessing an increase of 111% in price over the last year. The company attributes this success to the execution of its strategy and transformation plan, which has helped it to improve its financial performance and operational efficiencies.

"We are confident that the proposed capital raise will further strengthen the company's financial profile and position it for continued growth and sustainability," said the management. The capital raised will be utilized to retire existing liabilities and to fund growth opportunities, including the execution of the company's robust pipeline of projects and the expansion of its renewable energy business.

The company's shareholders will soon decide the outcome of this announcement, which completes R-Infra's transition to a sustainable, debt-free company. With a diversified portfolio and a promising future in the renewable energy sector, R-Infra is heading toward greener skies.

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