Reliance Infrastructure Rises over 3% After ₹300 Crore Equity Infusion by Promoter Group

Shares of Reliance Infrastructure Ltd climbed over 3% intraday on Tuesday following the company’s announcement of allotting equity shares worth ₹300 crore to a promoter group entity, VFSI Holdings Pte Ltd., upon conversion of warrants. This capital infusion signals continued promoter confidence and aims to enhance the company’s financial strength and operational flexibility. As of 12:20 PM, the share is trading at ₹375.70, with an increase of 2.06%.

₹300 Crore Raised Through Warrant Conversion

Reliance Infra, in its exchange filing, stated that it has allotted 5.07 crore equity shares at ₹59 per share (including a premium of ₹55 per share) to VFSI Holdings. The conversion comes as part of an earlier approved preferential allotment plan by the Board in January 2023. This allotment brings the total capital raised through this route to approximately ₹300 crore.

The conversion of warrants into equity strengthens the company’s balance sheet by reducing leverage and enhancing liquidity, which may support ongoing and future infrastructure projects, especially in the power and transport sectors where the company has a significant presence.

Strategic Move to Strengthen Financial Flexibility

Reliance Infrastructure said that the allotment reflects the promoter group’s long-term commitment to the company’s growth and reinforces its capital base. The move is aimed at “strengthening the financial position, enhancing operational flexibility, and supporting sustainable growth,” according to the company’s statement.

Analysts view such promoter-led equity infusions as a positive development, particularly for leveraged firms. It helps improve credit metrics and signals potential turnaround strategies or new business initiatives backed by financial support.

Market Reacts Positively

Following the announcement, Reliance Infra stock rose 3% to trade near ₹188 on the NSE. The stock has been volatile but has gained significant investor interest over the past few months, especially with developments around capital restructuring and business realignment efforts under the broader Reliance Group.

The equity issuance also boosts the company’s public shareholding and aligns with regulatory requirements while providing necessary working capital cushion.

Outlook and Sector Context

The capital raise comes at a time when India’s infrastructure sector is witnessing renewed policy focus and private investment, particularly in energy, metro rail, and toll road projects. Reliance Infrastructure, with its presence in key EPC (Engineering, Procurement & Construction) verticals, is looking to realign its operations in sync with the government’s capex push. Furthermore, the company’s pending arbitration claims and efforts to monetise certain assets could further support its deleveraging roadmap.

Conclusion

The ₹300 crore equity infusion by VFSI Holdings into Reliance Infrastructure not only signals strong promoter backing but also helps the company improve its capital structure and investability. With infrastructure spending on the rise and corporate deleveraging in focus, the move may serve as a stepping stone toward stronger financial performance in the quarters ahead.

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