The board of directors of Reliance Power Ltd has approved raising of up to $500 million from affiliates of Värde Investment Partners, LP, a leading global alternative investment firm.
The FCCBs will be unsecured and will have an interest of 5 per cent per annum, with a long tenure of 10 years. The FCCBs will be convertible into equity shares at ₹51 per share. The board of directors has also approved an Employees Stock Option Scheme (ESOS) for all employees of the company and its subsidiaries. ESOS provides for grant of up to 22,00,00,000 fully paid-up equity shares of ₹10 each of value of over ₹1,180 crore, representing approximately 5 per cent of the company’s fully diluted capital.
Recently, Reliance Infrastructure Ltd also announced raising up to $350 million from VFSI Holdings Pte. Ltd. This is in addition to the ₹3,000 crore fund raise announced on September 19 through a preferential issue.