Reliance Power seeks shareholders' nod to raise Rs 1,525 cr via preferential issue

New Delhi: Reliance Power will seek shareholders' approval to raise Rs 1,524.60 crore through a preferential issue.

According to the postal ballot notice, the company will raise up to Rs 1,524.60 crore by preferential issue of up to 46.20 crore equity shares and/or warrants convertible into equivalent number of equity shares of the company at a price of Rs 33 per share/warrant.

The e-voting period that commenced earlier on Tuesday, will end on Wednesday, October 23, 2024.

The result of the postal ballot will be announced on or before on Friday, October 25, 2024.

On September 23, the board of Reliance Power Ltd had approved raising Rs 1,524.60 crore through a preferential issue where promoters will pour Rs 600 crore into the company to advance its business.

Reliance Infrastructure, the promoter of the company, will enhance its equity stake by over Rs 600 crore. The other investors who will participate in the preferential issue include Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services.

The preferential issue proceeds would be utilised for expansion of business operations directly and/or through investment in subsidiaries and joint ventures, debt reduction and for general corporate purposes, the company has said.

The preferential issue will enhance the company's net worth from about Rs 11,155 crore to over Rs 12,680 crore.

"The listed entity has zero bank debt," the statement had said, adding the enhanced capital will support the company's participation in the renewable energy sector.