Reliance Power to allot 59.50cr equity shares and 73cr warrants to RInfra by conversion of its debt aggregating to Rs1,325cr

Reliance Infrastructure and other promoter group holding in Reliance Power shall increase to 24.98% and shall further increase to 38.24% on the conversion of warrants, benefitting ~8 lakh shareholders of Reliance Infrastructure, as per the regulatory filing.

Jul 14, 2021 02:07 IST India Infoline News Service

The Shareholders of Reliance Power Limited, through postal ballot, have approved with overwhelming majority, Preferential Issue of Equity Shares and Warrants.

Accordingly, Reliance Power shall allot 59.50cr equity shares and 73cr warrants convertible into an equivalent number of equity shares of the company at a price of Rs10 each by conversion of debt, aggregating upto Rs1,325cr, to Reliance Infrastructure Limited, a listed promoter company.

Reliance Infrastructure and other promoter groups holding in Reliance Power shall increase to 24.98% and shall further increase to 38.24% on conversion of warrants, benefitting ~8 lakh shareholders of Reliance Infrastructure, the company said in the regulatory filing.

The shareholders of Reliance Power have also approved with overwhelming majority, the raising of funds by issue of: (i) foreign currency convertible bonds upto 50% of the then net-worth of the Company, and (ii) securities through qualified institutions placement upto 25% of the then net-worth of the Company, it added.

Stock view:

Reliance Power Ltd is currently trading at Rs13.46 up by Rs0.06 or 0.45% from its previous closing of Rs13.40 on the BSE.

Reliance Infrastructure Ltd is currently trading at Rs83.50 up by Rs1.25 or 1.52% from its previous closing of Rs82.25 on the BSE.

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