Reliance Infrastructure Ltd has said that the company’s unit Reliance Defence and Engineering Ltd (RDEL) has obtained approval from the CDREG (Corporate debt restructuring empowered group) for exiting from the scheme.
RDEL’s existing debt of Rs. 650.00 crore will be converted into equity shares at a price of Rs. 59.35 per share, Reliance Infrastructure said in a note on Tuesday. Moreover, It has increased its shareholding in RDEL to 31%.
Reliance Defence and Engineering has a large ship-building infrastructure while Reliance Infrastructure has businesses in roads, power and Metro rail sectors. The former’s current order stands at over Rs. 5,300 cr, for coast guard, naval and commercial vessels.
RDEL Shareholders had already approved the said issue of equity shares to lenders by conversion of debt, at the company’s meeting held on March 20, 2017, it said.