Reliance Power
Reliance Power board approves preferential issue of Rs 1,524 crore
Mumbai/IBNS: Reliance Power’s board on Monday (Sept. 23) approved a plan to raise Rs 1,524.60 crore through a preferential issue of 462 million equity shares or warrants, convertible into an equivalent number of shares at Rs 33 per share or warrant, targeting promoters and other investors.
The company’s promoter, Reliance Infrastructure, is set to increase its equity stake by over Rs 600 crore.
Other investors involved in the preferential issue include Authum Investment and Infrastructure and Sanatan Financial Advisory Services, as per the company’s filing with stock exchanges.
Reliance Power stated that the preferential issue will comply with SEBI’s (Issue of Capital and Disclosure Requirements) Regulations, 2018, along with other applicable laws.
The funds raised will be directed towards business expansion, either through direct investment or by investing in subsidiaries and joint ventures, as well as for debt reduction and general corporate purposes.
Following the preferential issue, the company’s net worth is expected to grow from Rs 11,155 crore to over Rs 12,680 crore.
The increased capital will enable Reliance Power to expand its participation in the renewable energy sector.
In reaction to the announcement, Reliance Power’s shares surged, reaching a 5 percent upper circuit and closing at Rs 38.16 on Monday.
Last week, Reliance Infrastructure’s board approved raising Rs 3,014 crore through a preferential issue of shares or warrants to promoters and investors.
This issue will involve 125 million equity shares or convertible warrants at Rs 240 per share.
Through its promoter company, Risee Infinity, Reliance Infrastructure will invest Rs 1,104 crore, subscribing to 46 million shares in the preferential allotment.
Following the development, Reliance Power's shares surged 5 percent in Tuesday's (Sept. 24) trade to take its winning run to the ninth straight session.
The stock has surged by 35.48 percent over the last nine sessions, 67 percent in 2024 to date, and 111 percent over the past year.
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