Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is the debt-equity ratio with this equity infusion of Reliance Infrastructure?

0
Posted

What is the debt-equity ratio with this equity infusion of Reliance Infrastructure?

0

We have today a total net worth of Rs 11,900 crore and a total gross debt of Rs 7,300 crore giving us debt equity of 0.6:1. Although at a net debt level, we are zero, with this equity infusion our net worth will go up to more than Rs 16,000 crore putting us in the top-ten list in terms of net worth in the private sector. Assuming there is no more debt, it will come down to about 0.4. Q: Any particular reason for not doing the rights issue so that minority share holders could be part of this and how much more dilution do you need to do on the equity side in the next 12 to 18 months so that minority shareholders could get an idea of where they are in terms of dilutions? A: These warrants were issued in early 2008, at that time it was done at a price of Rs 1,822. So this was already factored-in. However, owing to the the warrants being deeply out of the money the probability of that money coming in was highly remote. So the promoter did offer the option of taking fresh warrants and what t

Related Questions

Thanksgiving questions

*Sadly, we had to bring back ads too. Hopefully more targeted.