Reliance Naval and Engineering Limited (RNEL) has confirmed plans to raise INR12 billion (USD180 million) through a share sale. In a filing to the Bombay Stock Exchange on 28 September, the company said that the planned rights issue had been approved by its board.
The share sale issue, which is expected to be launched in the next few months, will enable RNEL’s parent group, Reliance Infrastructure, to increase its shareholding in the company from the current 31% to 36%.
Speaking at Reliance Infrastructure’s annual general meeting on 26 September, the group’s chairman, Anil Ambani, told shareholders that the rights issue will also put the company in a stronger position to bid for major contracts, including a pending programme to build submarines for the Indian Navy (IN).
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