In a significant move to fuel its expansion plans, Reliance Infrastructure, part of the Anil Ambani-led business group, has announced plans to raise substantial capital through international financial markets. The company's board has given its approval for a major fund-raising initiative that could transform its financial position.
Major Fundraising Initiative Approved
The board of Reliance Infrastructure has cleared the path for raising up to $600 million through Foreign Currency Convertible Bonds (FCCBs). This decision came during a board meeting held on Tuesday, where directors authorized seeking necessary approvals from shareholders for this international offering.
The company clarified in its official exchange filing that this new FCCB proposal would replace an earlier version that had already received shareholder consent. The fundraising will be conducted through an international offering on a private placement basis, though the company may explore other methods as determined appropriate by the board.
All necessary statutory permissions, sanctions, and approvals will be obtained before proceeding with the bond issue. The specific terms and conditions of the FCCB issuance will be finalized by the board at an appropriate time, based on shareholder approvals and market conditions.
Quarterly Financial Performance Analysis
Reliance Infrastructure reported mixed financial results for the second quarter of fiscal year 2025-26. The company witnessed a significant 53% year-on-year decline in net profit, which stood at ₹1,911 crore compared to ₹4,083 crore in the same quarter last year.
However, the quarterly comparison tells a more positive story. The company demonstrated remarkable sequential growth, with net profit surging by an astonishing 3085% compared to the preceding June quarter, which had recorded a profit of just ₹60 crore.
The company's operational income showed some pressure, declining by 14% year-on-year to ₹6,234.91 crore for the quarter ended September 30, 2025. Despite these challenges, Reliance Infrastructure maintains a strong asset base, with consolidated assets valued at ₹69,708.76 crore as of the quarter end.
Operational Highlights and Market Response
The company's operational metrics revealed several positive developments in its core businesses. Reliance Infrastructure's Delhi distribution companies (Discoms) added 46,224 new consumers during the second quarter, expanding its total consumer base to 53.24 lakh customers.
A notable achievement highlighted by the company was the maintenance of Transmission & Distribution losses below 7% in its Delhi Discom operations. This performance reflects high operational efficiencies in managing power distribution networks.
Investors responded positively to the fundraising announcement and quarterly results. Reliance Infrastructure shares traded firmly on the stock exchanges, hitting the upper price band of 5% at ₹183.80 on the Bombay Stock Exchange. This strong market performance indicates investor confidence in the company's growth strategy and future prospects.
The combination of substantial fundraising plans and improved quarterly performance suggests that Reliance Infrastructure is positioning itself for significant expansion and operational improvements in the coming periods.
