The board of Reliance Power Ltd on Monday approved raising ₹1,525 crore through a preferential issue where promoters will pour ₹600 crore into the company to advance its business.
This comes days after Reliance Infrastructure, another Anil Ambani-led group firm, approved raising ₹6,000 crore.
“The Board of Directors of Reliance Power Ltd at its meeting held today has approved raising of Rs 1,524.60 crore by preferential issue of up to 46.20 crore equity shares and /or warrants convertible into equivalent number of equity shares of the company at a price of ₹33 per share/warrant,” the firm said in a statement.
Reliance Infrastructure, the promoter of the company, will enhance its equity stake by over ₹600 crore. The other investors who will participate in the preferential issue are Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services.
“The preferential issue proceeds would be utilised for expansion of business operations directly and/or through investment in subsidiaries and joint ventures, debt reduction and for general corporate purposes,” the statement said.
The preferential issue will enhance the company’s networth from about ₹₹11,155 crore to over ₹12,680 crore. “The listed entity has zero bank debt,” the statement said adding the enhanced capital will support the company’s participation in the renewable energy sector.
Reliance Infra is raising ₹ 6,000 crore -- ₹ 3,014 crore through preferential allotment of shares and ₹3,000 crore by issuing shares to institutional buyers.