Reliance Industries plans to raise £2.50 billion to replace existing high cost borrowings as well as build a war chest for its aggressive expansion strategy in the telecom space. They plan to raise the amount through through privately placed debentures. The Mukesh Ambani-led firm sought shareholders' nod to issue redeemable non-convertible debentures (NCDs) on private placement. In a stock exchange notice, RIL said the company's annual general meeting will be held on July 21 to consider the fund raising.
A shareholder resolution sought nod “to offer or invite subscriptions for secured unsecured redeemable non-convertible debentures, in one or more series tranches, of an aggregate nominal value up to £2.50 billion on private placement.“
It sought to authorise the board of directors to “determine and consider proper and most beneficial to the company, including, without limitation, as to when the said debentures are to be issued, the face value of debentures to be issued, the consideration for the issue, mode of payment, coupon rate, redemption period, utilisation of the issue proceeds and all matters connected.” Also, the board of directors are sought to be authorised “to do all acts and take all such steps as may be necessary, proper or expedient” for fund-raising.
The company had raised £3 billion in 2015-16 through a rights issue in two parts and in January this year said it would raise another £3 billion through a rights issue of optionally convertible preference shares to invest in Reliance Jio.
RIL has already invested $25 billion in setting up a nationwide, fourth generation mobile network.
