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Reliance Power Raises ₹1,524 Crore Through Preferential Issue

24 September 20242 mins read by Angel One
The preferential allotment of equity shares would support Reliance Power's net worth from ₹11,155 crore to over ₹12,680 crore.
Reliance Power Raises ₹1,524 Crore Through Preferential Issue
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Reliance Power has secured approval to raise up to ₹1,524.60 crore through a preferential allotment of equity shares. The shares will be issued at ₹33 per share, representing a 13% discount to the company’s last closing price.

This capital infusion will significantly enhance Reliance Power’s net worth, boosting it from ₹11,155 crore to over ₹12,680 crore. The proceeds from the issue will be utilised for business expansion, investments in subsidiaries and joint ventures, debt reduction, and general corporate purposes.

Reliance Infrastructure, the promoter of Reliance Power, has also announced its intention to increase its equity stake in the company by over ₹600 crore through the preferential issue. This move reinforces Reliance Infrastructure’s commitment to supporting Reliance Power’s growth and development.

Other notable investors participating in the preferential issue include Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services Private Ltd.

The board of Reliance Power has approved a postal ballot notice to seek shareholder approval for the preferential issue. This step is necessary to ensure that the transaction complies with regulatory requirements and receives the necessary support from shareholders.

The successful completion of this preferential issue will provide Reliance Power with the financial resources to pursue its growth objectives and strengthen its financial position.

About Reliance Power Limited 

Reliance Power is engaged in the development, construction, and operation of power projects in India and internationally. The company, on its own and through its subsidiaries, has a large portfolio of power generation capacity, both in operation and under development. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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