Reliance Power to Raise Rs 1,524.60 Crore Through Preferential Issue

Reliance Power seeks shareholders' approval to raise Rs 1,524.60 crore via preferential issue. This includes issuing 46.20 crore equity shares/warrants at Rs 33 each. The e-voting period ends on October 23, 2024. Promoters will invest Rs 600 crore. Funds will aid business expansion, debt reduction, and corporate purposes.

Reliance Power is set to seek shareholders' approval to raise Rs 1,524.60 crore through a preferential issue.

The postal ballot notice indicates that the company will raise the amount by issuing up to 46.20 crore equity shares and/or warrants, each priced at Rs 33. The e-voting period ends on October 23, 2024, with results expected by October 25, 2024.

On September 23, the board approved the move, wherein promoters will invest Rs 600 crore to bolster the company's business. Reliance Infrastructure, the company's promoter, will increase its equity stake by Rs 600 crore, with additional investments coming from Authum Investment and Sanatan Financial Advisory Services. These funds will be utilized for business expansion, debt reduction, and general corporate purposes. The preferential issue is expected to elevate the company's net worth from approximately Rs 11,155 crore to over Rs 12,680 crore.

Notably, the company stated it has zero bank debt, and the enhanced capital will support its ventures in the renewable energy sector.

(With inputs from agencies.)