Reliance to unlock some treasury stock
India's largest private company, Reliance Industries, is on a huge fund-raising drive. After completing a preferential issue of 120 million warrants to promoters in February this year for Rs 16,824 crore, the Mukesh Ambani controlled company is now planning to mop up around Rs 10,000 crore through a combination of convertible bonds and treasury stock.
According to highly placed industry sources, the company is likely to issue foreign currency convertible bonds/ warrants/convertible debentures to be converted within 12-18 months at Rs 1,900-2,100 a share. The Reliance Industries scrip is trading at Rs 1,597 and the company has the highest market capitalisation of Rs 2,22,557 crore on the Indian bourses.
At the time of conversion, Reliance Industries would use treasury stock and not issue fresh equity in lieu of the convertible instruments, investment banking sources said on condition of anonymity.
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