
Reliance Infra planning to raise funds, board meeting next week
What's the story
Reliance Infrastructure, part of the Reliance Group, has announced its intention to raise long-term capital through a variety of financial instruments. The Mumbai-based company will hold a Board of Directors meeting on July 16, 2025, to discuss this capital-raising strategy. The plan includes issuing equity shares and equity-linked securities as well as Non-Convertible Debentures (NCDs). The company is targeting institutional investors with these fundraising efforts.
Fundraising approach
Reliance Infra's filing details
The upcoming board meeting will consider and approve the raising of long-term resources through various methods. These include direct issuance of equity shares, equity-linked securities via qualified institutional placement routes, and NCDs across multiple tranches/series. The filing also indicates that the board will seek necessary approvals from members as deemed appropriate, suggesting potential shareholder approval through special resolutions depending on the scale and nature of fundraising.
Investor focus
Announcement ahead of Q1 results
The choice of qualified institutional placement as one of the methods indicates that Reliance Infrastructure is targeting institutional investors. This move usually reflects confidence in a company's fundamentals and growth prospects. The timing of this announcement is crucial as it comes just before the Q1 FY 2026 financial results, which will give investors an idea about the company's current financial performance and validate its need for additional capital.
Financial standing
Company's credit rating upgraded earlier this week
Earlier this week, Reliance Infrastructure announced a three-notch upgrade in its credit rating by India Ratings and Research. The company was upgraded from an earlier rating of "IND D" to "IND B/Stable/IND A4." Over the past year, Reliance Infra shares have surged by 97%. This year alone, its returns have been around 18%, significantly outperforming the headline indices Nifty and Sensex, which have seen a slight uptick of over 3%.