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Reliance Power Secures $500 Million through FCCBs and Introduces Employee Stock Option Scheme – Explore the Key Highlights

Reliance Power's board has approved raising up to $500 million (approximately ₹4,198 crore) through Foreign Currency Convertible Bonds (FCCBs) at a 5% interest rate, along with an Employee Stock Option Scheme.

The board of directors of Reliance Power approved a proposal to raise up to $500 million (approximately ₹4,198 crore) by issuing bonds. This decision was announced in a regulatory filing on Thursday, highlighting the company’s strategy to enhance its capital structure.

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Additionally, the board sanctioned an Employee Stock Option Scheme (ESOS) aimed at all employees, enabling them to benefit from the company’s growth. The ESOS is designed to align employee earnings with the company’s performance and is expected to unlock significant earning potential for staff members.

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The bonds will take the form of unsecured Foreign Currency Convertible Bonds (FCCBs) with an ultra-low interest rate of 5% per annum, maturing in 10 years. Reliance Power stated that the FCCBs will be issued to affiliates of Varde Investment Partners, LP, a prominent global alternative investment firm.

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The FCCBs will be convertible into equity shares at a price of ₹51 per share. This move is part of Reliance Power’s ongoing efforts to strengthen its financial position and create value for shareholders.

Reliance Power, a key player in India’s power generation sector, boasts a total installed capacity of 5,340 MW, which includes the 4,000 MW Ultra Mega Power Project located in Sasan, Madhya Pradesh.

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