Reliance Power has announced that it has secured approval from its shareholders to raise ₹1,524.60 crore through the issuance of preferential shares. The approval came via a resolution passed through a postal ballot, achieving the required majority, as stated in a stock exchange filing released late Wednesday.
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The company plans to raise up to ₹1,524.60 crore by issuing up to 46.20 crore equity shares and/or convertible warrants at a price of ₹33 each. This move was initially approved by the board on September 23, aiming to bolster its business operations.
Promoters will contribute ₹600 crore to the preferential issue, with Reliance Infrastructure, the company’s promoter, set to increase its equity stake. Other investors participating in this issue include Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services.
The funds raised will be directed toward expanding business operations, investing in subsidiaries and joint ventures, reducing debt, and addressing general corporate needs. This financial strategy aims to enhance the company’s operational capabilities.
As a result of the preferential issue, Reliance Power’s net worth is projected to rise from approximately ₹11,155 crore to over ₹12,680 crore, strengthening its financial position significantly.
