Reliance Power’s decision to raise funds has come days after Reliance Infrastructure announced plans for Rs 6,000 crore fundraise
Anil Ambani's Reliance Power, which recently became a zero-debt company on standalone basis, plans to raise long term funds. The board of directors on September 23 is likely to draft a detailed roadmap for raising funds, including the decision whether funds will be raised from domestic or global markets.
As per the company, the board of directors of Reliance Power will consider and approve raising of long-term funds from domestic and/or global markets, either by way of preferential issue and/or QIP and/or rights issue and/or foreign currency convertible bonds.
The move has come just days after Reliance Infrastructure announced plans to raise Rs 6,000 crore. About Rs 3,014 crore will be raised through preferential allotment of shares under which around 12.56 crore equity shares or convertible warrants will be issued at an issue price of Rs 240 per share. The proceeds from the preferential issue will be allocated to expand business operations, including investments in subsidiaries and joint ventures. Additionally, it will also be utilised to meet long-term working capital requirements as well as general corporate purposes.
After the issue, the net worth of Reliance Infrastructure will increase from Rs 9,000 crore to Rs 12,000 crore with around nil debt.
The promoter company, Risee Infinity Private, will invest around Rs 1,104 crore while around Rs 3,000 crore will be financed by QIP.
Moreover, nearly Rs 1,910 crore will be invested by two Mumbai-based investment firms, Fortune Financial and Florintree Innovation.
The last time Reliance Infra raised funds was in July 2021. The amount worth Rs 550 crore was raised through preferential issue. Out of which, Rs 400 crore were infused by promoters and Rs 150 crore by Varde Capital Partners.