Reliance Power allots 59.50cr equity shares, 73cr warrants to Reliance Infra; Stock dives

Last month, Reliance Power agreed to raise Rs1,325cr by issuing preferential shares and warrants to its parent Reliance Infra.

Jul 16, 2021 01:07 IST India Infoline News Service

Reliance Power
Reliance Power has allotted 59.50 Crore equity shares and 73 Crore warrants convertible into an equivalent number of equity shares of the Company by conversion of debt, to Reliance Infrastructure consequent to approval from shareholders through postal ballot.

After allotment, the shareholding of Reliance Infra and another promoter group in Reliance Power increased to 24.98% and may further increase to 38.24% on the conversion of warrants, which shall be subject to compliance with the applicable provisions of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and other provisions of law, as and when applicable.

Last month, Reliance Power agreed to raise Rs1,325cr by issuing preferential shares and warrants to its parent Reliance Infra.

This will reduce Reliance Power standalone debt by Rs1,325cr and along with planned debt reduction in subsidiaries. Reliance Power consolidated debt is planned to be reduced by Rs3,200cr in FY22.

At around 1.24 pm, Reliance Power was trading at Rs12.96 per piece down by 1.2% on Sensex.

At the same time, Reliance Infra was trading at Rs79.65 per piece down by 1.2% on Sensex.

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