Reliance Power Secures Shareholder Nod for ₹1,525 Cr Financing

24 Oct 2024 , 01:48 PM

According to Reliance Power, shareholders have approved its plan to issue preferred shares in order to raise Rs 1,524.60 crore. In a late-night stock exchange filing on Wednesday, the business stated that a resolution via a postal ballot notice had been passed with the necessary majority.

The company’s promoter, Reliance Infrastructure, plans to increase its equity investment by more than Rs 600 crore. Sanatan Financial Advisory Services and Authum Investment and Infrastructure Ltd. are among the other investors taking part in the preferential issuance.

The business plans to raise up to Rs 1,524.60 crore through the preferential issuance of up to 46.20 crore equity shares and/or warrants convertible into an equivalent number of equity shares at a price of Rs 33 each, as stated in the postal ballot notice.

The board of Reliance Power Ltd. approved the issuance of preferential shares on 23 September in order to raise Rs 1,524.60 crore. The promoters will then invest Rs 600 crore in the company to further its operations.

According to the corporation, the new funding would be used for debt reduction, general corporate objectives, and the direct and/or indirect expansion of business activities through investments in subsidiaries and joint ventures.

According to the corporation, the preferred issue will increase its net worth from approximately Rs 11,155 crore to over Rs 12,680 crore.

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