Anil Ambani-owned Reliance Power’s board of directors on Monday approved the issuance of up to 46.20 crore equity shares or warrants at an Issue Price of Rs 33 per share aggregating Rs 1524.60 crore through preferential allotment.
The company also informed that Reliance Infrastructure Limited, the promoter of Reliance Power will enhance its equity stake by over Rs 600 crore. The other investors in the preferential issue include Authum Investment and Infrastructure Limited and Sanatan Financial Advisory Services Private Limited.
The company aims to utilise the proceeds from the issue for the expansion of business operations directly and through investment in subsidiaries and joint ventures, debt reduction and general corporate purposes.
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“Preferential Issue will enhance the Company’s net worth from over Rs 11,155 crore to over Rs 12,680 crore. The listed entity has ZERO bank debt,” the statement added.
In addition, the enhanced capital will support the company’s participation in the renewable energy sector.
“The Board also approved the issuance of postal ballot to seek shareholders’ approval for the preferential Issue. The above shall be subject to all requisite permissions, sanctions and approvals as may be necessary,” the company said.
Ahead of the announcement on Monday, shares of Reliance Power touched 52-week high to settle at Rs 38.15, a 5 per cent surge and hitting the upper circuit limit. The stock touched the upper circuit on Wednesday, Thursday, and Friday last week. This was the eighth straight session of rally for the power sector stock.
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Reliance Power Limited, a part of the Reliance Group, is a private-sector power generation and coal resources company. The company has one of the largest portfolios of power projects in the private sector, based on coal, gas and renewable energy, with a commissioned portfolio of 5,300 megawatts.
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