Reliance Infra cuts standalone external debt by 88% to Rs 475 crore

The company recently announced its plan of raising long-term capital

Reliance Infrastructure Limited (Reliance Infra), an Anil Ambani group company, announced that it has reduced its standalone external debt by almost 88 per cent. The company's standalone external debt now stands at Rs 475 crore, down from Rs 3,831 crore.

The infrastructure firm stated, "Invent Assets Securitisation and Reconstruction Private Limited, a lender to the company, has novated certain charged securities to recover its dues." As a result, the company’s outstanding amount owed to Invent ARC has been reduced to zero.

Additionally, the company stated that it has fully repaid its outstanding dues to Life Insurance Corporation of India, Edelweiss Asset Reconstruction Company Limited, ICICI Bank, Union Bank, and other lenders.

 

With this reduction in debt, the company's net worth stands at Rs 9,041 crore.

Earlier, the company announced that it was considering raising long-term capital from domestic and global markets through a stock exchange filing. The funds may be raised by issuing equity shares, equity-linked securities, or warrants convertible into equity shares by way of a preferential issue, qualified institutional placement (QIP), rights issue, or any other method, subject to the board's approval.

The company’s board meeting is scheduled for Thursday, September 19, to consider and approve the issue price.

As of 12:25 PM on Wednesday, the company’s shares are trading at Rs 248.28 on the National Stock Exchange (NSE), up more than 5 per cent, with an intraday high of Rs 254.30.