Reliance Power board clears pref issue of Rs 1524 crore
The board of Reliance Power on Monday approved raising Rs 1,524.60 crore through a preferential issue of 462 million equity shares or warrants convertible into an equivalent number of shares at a price of Rs 33 per share/warrant to promoters and other investors.
Reliance Infrastructure, the company’s promoter, will increase its equity stake by over Rs 600 crore. Other investors participating in the preferential issue include Authum Investment and Infrastructure and Sanatan Financial Advisory Services, according to the company’s exchange filing.
The preferential issue will comply with SEBI’s (Issue of Capital and Disclosure Requirements) Regulations, 2018, along with other applicable laws, the company said.
Proceeds from the preferential issue will be used for business expansion, either directly or through investments in subsidiaries and joint ventures, for debt reduction, and general corporate purposes, the company added.
As a result of the preferential issue, the company’s net worth will increase from Rs 11,155 crore to over Rs 12,680 crore. “The enhanced capital will support the company’s participation in the renewable energy sector,” Reliance Power said. Following the announcement, Reliance Power’s shares hit the upper circuit of 5% on Monday, closing at Rs 38.16.
Last week, Reliance Infrastructure’s board approved raising Rs 3,014 crore through a preferential issue of shares or warrants to promoters and investors. The issue will involve 125 million equity shares or convertible warrants at an issue price of Rs 240 per share.
Promoters of Reliance Infrastructure through promoter company Risee Infinity would invest Rs 1,104 crore in the preferential allotment planned by the company. Risee will subscribe to 46 million shares.
Source : Financial Express