A promoter of the Anil Ambani-controlled Reliance group is expected to invest around Rs 1,600 crore in the equity shares of its group company, Reliance Infrastructure. Following this, the promoter company, AAA Project Ventures’, stake in Reliance Infrastructure might go up to 48 per cent from the current 43 per cent.
Reliance Infrastructure today informed the stock exchanges that a committee of directors of the company will meet tomorrow to consider allotment at a price of Rs 928.89 per share to AAA Project Ventures. The conversion of these warrants could take place on January 8 and an announcement to this effect tomorrow.
The promoter company was allotted a total of 4.29 crore warrants in July 2009, convertible into an equal amount of shares at a fixed price. The warrants carried the option to be converted into shares any time after October 9, 2009, but not after 18 months from the date of allotment of warrants, the company had said.
The company’s stock rose 0.3 per cent in today’s trade to close at Rs 859 per share, according to data available on the Bombay Stock Exchange. The price fixed for warrant conversion is significantly higher than the trading price of the stock for the last few months. A research report by Kotak Mahindra Bank says the company stock had been under-performing by 26 per cent for the last three months.
R-Infra, which is engaged in the business of development of infrastructure projects, as well as engineering, procurement and construction, is currently developing 25 projects with a total investment of around Rs 40,000 crore. Of the same, it has around 12 projects, which are generating revenue of Rs 20,000 crore annually.
The company has a road project portfolio of 970 km across six states. It is also developing three metro projects — Mumbai Metro Phase I and II and the Delhi airport metro. The company is also developing five transmission line projects, five airport projects, as well as the second phase of Bandra-Worli sea link project.
