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July 07Reliance Infra shares fall 4% despite go-ahead for fund raising plans
The shareholders of Reliance Infra have also approved the raising of funds by issue of Foreign Currency Convertible Bonds (FCCB) up to 24 percent of the than fully diluted equity share capital of the Company. The funds raised would be utilised for long term resources, for general corporate purposes and to fund future growth, the company said.
Reliance Infrastructure share price was trading lower by over 4 percent intraday on July 7. The stock has been in focus as the company`s shareholders approved q preferential issue to promoters and Varde Investment Partners.
In an exchange filing to the BSE, the company said, "The shareholders of Reliance Infrastructure Limited, through postal ballot, have approved the raising of funds upto Rs 550.56 crore by preferential allotment of upto Rs 8.88 crore equity shares and/or warrants convertible into equivalent number of equity shares of the Company to promoters and VFSI Holdings PTE. Limited, an affiliate of Värde Investment Partners, LP.
"The shareholders of Reliance Infra have also approved the raising of funds by issue of Foreign Currency Convertible Bonds (FCCB) up to 24 percent of the fully diluted equity share capital of the Company. The funds raised would be utilised for long term resources, for general corporate purposes and to fund future growth," the company added.
The stock was trading at Rs 78.00, down Rs 4.00, or 4.88 percent at 09:55 hours. It has touched an intraday high of Rs 81.85 and an intraday low of Rs 78.
Reliance Infrastructure on May 28 said its consolidated net loss for the March quarter of FY21 narrowed to Rs 46.53 crore. As per the company`s BSE filing, it had reported a consolidated net loss of Rs 153.84 crore in the year-ago period.
Analysts, however, are not convinced of the fundamentals of these two stocks. "Overall, fundamentals of both the stocks are not good, so better to keep them as short and medium-term bets," said Nitin Shahi, Executive Director, FINDOC.
On technical charts, a lot of buying was observed on the daily chart and volume was two-three of average volume traded, Shahi said.
"One can hold on to positions with a strict stop loss of Rs 55 for the targets of Rs 80-100," he said.