According to officials, Reliance Infrastructure Ltd. and Reliance Power Ltd. are ready to implement their expansion plans, the news agency PTI said on Sunday.

New Delhi, Oct. 6 (PTI) — Anil Ambani’s Reliance Group companies, Reliance Infrastructure Ltd. and Reliance Power Ltd., have raised ?17,600 crore and are debt-free, making them ready to implement their expansion plans, authorities said.
Through equity-linked long-term FCCBs with a long maturity period of 10 years and a low interest rate of 5%, both companies have announced raising ?7,100 crore from renowned global investment fund Varde Partners and ?4,500 crore through preferential issues of equity shares in the last two weeks.
With Reliance Power and Reliance Infrastructure each looking for ?3,000 crore, qualified institutional placement (QIP) will raise an extra ?6,000 crore.
According to officials, shareholder approvals are anticipated by the end of the month once resolutions are in place.
“The Reliance Group’s strategy of raising capital through equity or equity-linked long-term bonds will offer the group companies essential growth capital for their expansion plans,” a senior official of the group said.
Raising more than ?17,000 crore in stock or equity-linked bonds will give the group companies a total investment outlay of ?50,000 crore for their future business goals over the next several years, even with a conservative debt-to-equity ratio of 70:30.
Additionally, the fundraising will increase both companies’ net worth to almost ?25,000 crore.
Both firms are funding ?4,500 crore through preferential offers of equity shares, according to documents made to the stock exchange. The promoters will contribute ?1,750 crore of this, with four significant investors—Fortune Financial & Equities Services, Florintree Innovations LLP, Authum Investment and Infrastructure, and Sanatan Financial Advisory—contributing the remaining ?3,750 crore.
Additionally, Varde Partners is using equity-linked foreign currency convertible bonds (FCCB) to invest ?7,100 crore. These equity-linked FCCBs feature a low interest rate of 5% and a lengthy 10-year maturity period.
According to the executives, these intentions for fundraising show that both businesses have the financial development engines in place.