Reliance group cos raise $400 million equity

The Reliance group on Monday announced that two group infrastructure companies, Reliance Utilities & Power Ltd (RUPL) and Reliance Ports & Terminals Ltd (RPTL), had concluded a $400 million equity offering to international investors. RIL managing director Anil Ambani said: “We are happy with the overwhelming response from international investors to the $400 million equity offerings by RUPL and RPTL.

The success of this international offering is an affirmation of the global competitiveness of RUPL’s and RPTL’s operations and of the huge potential of the infrastructure sector in India”. Standard Chartered Bank acted as the investment banker to the transaction. The deal represents approximately 15 per cent of the share capital of RUPL and RPTL. Going by the international offering, the effective valuation assigned is over $2.5 billion — or Rs 12,500 crore — to the two Group companies. It has been pointed out by Reliance-watchers said the equity offering is reflective of the belief that even if group patriarch Dhirubhai Ambani’s illness keeps him away from his desk for an extended period of time, there is unlikely to be any impact on Reliance’s operations.