Reliance Infrastructure Signs ₹1,673 Crore Settlement Agreement with Cosmea Business Acquisitions

MUMBAI, May 24, 2025 – Reliance Infrastructure Limited (NSE: RELINFRA, BSE: 500390) has entered into a significant settlement agreement worth ₹1,673 crore with Cosmea Business Acquisitions Private Limited to resolve corporate guarantee obligations, the company disclosed on Friday.

Key Terms of the Agreement

• Purpose: The deal settles corporate guarantee liabilities previously issued by Reliance Infrastructure.
• Settlement Amount: The obligation has been agreed to be resolved at ₹425 crore.
• Future Obligations: As part of the settlement, Cosmea has agreed that no cash call will be made against Reliance Infrastructure for the next 10 years.
• Repayment Flexibility: The company retains the option to discharge the obligation with applicable interest at any point within 10 years. This can be done via cash or non-cash means, including the potential issuance of shares, subject to regulatory approvals.

Additional Highlights

• Shareholding: Reliance Infrastructure holds no equity stake in Cosmea Business Acquisitions.
• Related Party Transaction: The transaction does not qualify as a related party deal and has been executed at arm’s length.
• No Issuance of Shares: No securities or equity instruments are being issued as part of the current agreement.

Strategic Context

This agreement marks a key step in Reliance Infrastructure’s ongoing efforts to strengthen its balance sheet and manage contingent liabilities without immediate cash outflows. The 10-year cash call moratorium provides breathing room for strategic planning and capital allocation.

Company Profile

Reliance Infrastructure Limited, part of the Reliance Group, is engaged in infrastructure development across the power, roads, metro rail, and defence sectors. The company has been actively restructuring its debt and liabilities over the past few years.

This settlement positions Reliance Infrastructure to focus on its core operations and long-term growth opportunities without the pressure of short-term liabilities.

REF: https://nsearchives.nseindia.com/corporate/RELINFRA_24052025114728_SEDisclSettlemtAgreementwithCBAPL23052025.pdf