Team News Riveting
Mumbai, June 13
The Board of Directors of Reliance Power Limited at its meeting held today gave nod to raise Rs 1,325 crore by issuing preferential shares and warrants to its parent, Reliance Infrastructure.
In the meeting held today, the Board of Directors of Reliance Infrastructure Limited (Reliance Infra) at its meeting held today approved the subscription of preferential issue of up to 59.5 crore equity shares and up to 73 crore warrants convertible into equivalent number of equity shares of Reliance Power Limited (Reliance Power), by conversion of outstanding debt including interest aggregating up to Rs. 1,325 crore, the company said in a statement.
Following the development, Reliance Power’s standalone debt will reduce by Rs 1,325 crore and along with its other planned debt reduction in subsidiaries, its consolidated debt will further fall by Rs 3,200 crore in the financial year 2021-22 (FY22), which will reduce its debt-equity ratio to 1.80:1, the statement added.
The Preferential Issue by Reliance Power shall be made at an Issue Price of Rs. 10 per Share, as per SEBI (ICDR) Regulations. Shareholding of Reliance Infra and promoter group in Reliance Power will increase to 25 per cent after the issue of equity shares and will further increase to over 38 per cent post conversion of warrants.
Reliance Power is India’s leading private sector power generation and coal resources company. Reliance Power has one of the largest portfolios of power projects in the private sector in India, based on coal, gas and renewable energy, with an operating portfolio of 5,945 megawatts.
