Home / Companies / News /  Reliance Power approves issue of shares, warrants worth 1,325 cr to RInfra

Reliance Power Ltd's board on Sunday approved a preferential issue of 59.5 crore equity shares and 73 crore warrants worth 1,325 crore to its promoter firm Reliance Infrastructure.

Reliance Power Ltd board approved the preferential issue of shares and warrants to Reliance Infra at 10 per share.

The company, in a regulatory filing informed that its board approved a preferential issue of up to 59.5 crore equity shares and up to 73 crore warrants convertible into equivalent number of its equity shares, at an issue price of 10 each by conversion of debt to listed promoter firm Reliance Infrastructure Ltd.

As per the filing, this will reduce Reliance Power's standalone debt by 1,325 crore and along with planned debt reduction in subsidiaries, Reliance Power's consolidated debt will reduce by 3,200 crore in 2021-22.

With this, the shareholding of Reliance Infra and promoter group in Reliance Power will increase to 25% after the issue of equity shares, the company said.

And, the shareholding will further increase to over 38% post-conversion of warrants, it added.

Further, the Reliance Power's board also approved seeking enabling authorisations of members for issuance of foreign currency convertible bonds, and securities through qualified institutions placement.

The board approved seeking approval of the company's members for these proposals through a postal ballot.

Last week, Anil Ambani-led Reliance Infrastructure Ltd raised funds up to 550.56 crore by preferential allotment of shares to reduce debt and fund future growth.

The board of directors approved fund raising by preferential allotment of upto 8.88 crore equity shares and/or warrants convertible into equivalent number to promoter group and VFSI Holdings Pte Ltd, an affiliate of Varde Investment Partners LP.

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