Reliance Power announces ₹1,524.60 Crore preferential issue

24 Sep 2024 , 10:56 AM

Reliance Power has approved a preferential issue to raise up to ₹1,524.60 Crore by issuing up to 46.2 Crore equity shares at 33 each. The decision was taken at a board meeting on Monday, September 23, 2024.

The issue price is 13% below the company’s last trading price of ₹38.15 on Monday.

The preferential allotment will increase Reliance Power’s net worth from ₹11,155 Crore to above ₹12,680 Crore, according to an exchange filing.

Last Monday, Anil Ambani’s power firm completed its ₹3,872.04 Crore obligation with power generation company Vidarbha Industries Power Ltd, reaching zero debt with banks and other institutions.

Reliance Infrastructure, the promoter of Reliance Power, has decreased its external debt from ₹3,831 Crore to ₹475 Crore by novating securities and settling dues with lenders.

According to Reliance Power, Reliance Infrastructure intends to grow its equity interest by around ₹600 Crore through the preferential issuance.

According to the company, the proceeds from the preferred offer will be used to support business expansion, investments in subsidiaries and joint ventures, debt reduction, and general corporate objectives. Other significant investors in the placement include Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services Private Ltd.

The board also authorised the issuance of a postal ballot notice to solicit shareholder support for the preferential issue.

At around 10.45 AM, Reliance Power was trading 4.98% higher at ₹40.05, against the previous close of ₹38.15 on NSE. 

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