Days after becoming debt-free, Anil Ambani's Reliance Power has approved a Rs 1,525 cr preferential issue. The move is aimed at strengthening the company's renewable energy business and boosting its balance sheet. Reliance Power's promotor, Reliance Infrastructure, will enhance its equity stake by over Rs 600 crore to advance its business. The other investors who will participate in the preferential issue are Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services.
This comes days after Reliance Infrastructure, another Anil Ambani-led group firm, approved raising Rs 6,000 crore. The issue entails up to 46.20 crore equity shares or warrants convertible into equity shares at a price of Rs 33 per share. On Monday, the company shares rose by 4.98 per cent to Rs 38.15. The market cap of R-Power reached Rs 15325 crore on September 23.
"The Board of Directors of Reliance Power Limited at its meeting held today has approved raising of Rs 1,524.60 crore by preferential issue of up to 46.20 crore equity shares and /or warrants convertible into equivalent number of equity shares of the company at a price of Rs 33 per share/warrant," the firm said in a statement.
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"The preferential issue proceeds would be utilised for expansion of business operations directly and/or through investment in subsidiaries and joint ventures, debt reduction and for general corporate purposes," it added.
The preferential issue will enhance the company's net worth from about Rs 11,155 crore to over Rs 12,680 crore. "The listed entity has zero bank debt," the statement said adding the enhanced capital will support the company's participation in the renewable energy sector. Reliance Infra is raising Rs 6,000 crore -- Rs 3,014 crore through preferential allotment of shares and Rs 3,000 crore by issuing shares to institutional buyers.
(With inputs from PTI)
