Shares of Anil Ambani-led Reliance Power, which had seen a 44% rise in the last two weeks, took a hit on Monday, dropping over 4% ahead of an important board meeting. The meeting, scheduled for Thursday, October 3, will focus on strategies to raise long-term funds from both domestic and international markets.
During Monday's trading session, Reliance Power shares declined by 4.33%, reaching a low of Rs 44.35 on the BSE after previously closing at Rs 46.35. At the time of writing, the stock had a traded volume of 80,198,447 shares, with an average trading price of Rs 45.16. On the National Stock Exchange, the total buy orders stood at 5,419,065 shares, while the sell orders amounted to 12,315,989 shares.
The board will discuss various options to raise funds, which may include issuing equity shares, equity-linked instruments, or convertible warrants. Other potential avenues under consideration are preferential issues, qualified institutional placements (QIP), rights issues, and foreign currency convertible bonds (FCCBs). The board will finalize the most suitable method for securing the funds and seek the necessary approvals.
Reliance Power recently made headlines after allotting 46.20 crore shares through a preferential issue, valued at Rs 1,524.60 crore. The shares were allocated to Reliance Infrastructure Ltd, the promoter, along with two other entities—Authum Investment and Infrastructure Ltd, and Sanatan Financial Advisory Services Private Ltd.
A substantial portion of the raised capital, Rs 803.60 crore, is earmarked for expanding the company’s renewable energy ventures and exploring new business opportunities. It will also be used to address the company's long-term working capital needs.
In addition, Reliance Power has announced that it is now free of debt owed to banks and financial institutions, with a net worth of Rs 11,155 crore as of June 30, 2024. This achievement follows the resolution of a dispute with CFM Asset Reconstruction Private Limited, in which Reliance Power pledged 100% of the shares of its subsidiary, VIPL, to release a corporate guarantee.
