The Reliance board approved allotment of 120 million warrants to chairman Mukesh Ambani and his associates. The warrants on conversion of equal shares will scale up promoters' stake by 4 per cent to 54.65 per cent.

Though the company did not disclose the price and timing of the warrants, the promoters will have to chip in at least Rs 17,000 crore (Rs 170 billion) going by the market price of Rs 1,450 a share. But companies normally charge a premium on preferential issues.

Ambani said, "The board's approval to enhance the equity capital of the company by preferential issue of warrants to promoters demonstrates our commitment to value creation at Reliance. The substantial enhancement of shareholders funds will take Reliance to a higher growth platform by strengthening its capital structure."

The company said the promoters would put 10 per cent of the price on allotment of warrants and the balance 90 per cent would be paid at the time of subscription to equity shares, on exercise of rights attached to the warrants, within 18 months.

On conversion, the paid-up capital of the company will increase from Rs 1,393 crore (Rs 13.93 billion) to Rs 1,513 crore (Rs 15.13 billion).