"The Shareholders of Reliance Power Limited (Reliance Power), through postal ballot, have approved with overwhelming majority, preferential issue of equity shares and warrants," a company statement said.
Accordingly, it said that Reliance Power shall allot 59.50 crore equity shares and 73 crore warrants convertible into equivalent number of equity shares of the company at a price of ₹10 each by conversion of debt, aggregating up to ₹1,325 crore, to Reliance Infrastructure Ltd, a listed promoter company.
Reliance Infrastructure and other promoter group holding in Reliance Power will increase to 24.98 per cent and shall further increase to 38.24 per cent on conversion of warrants, benefitting 8 lakh shareholders of Reliance Infrastructure, it said.
The shareholders of Reliance Power have also approved with overwhelming majority, the raising of funds by issue of foreign currency convertible bonds and securities through qualified institutions placement.
In the postal ballot notice issued last month, the company had said it aims to be debt-free.
To meet this objective and to enhance net worth and financial position, it is proposed that existing debt facilities provided by the company's promoter, RInfra, be capitalised by converting or appropriating the same into equity shares and/or warrants convertible into equity shares, it had stated.
RInfra had also consented to the proposed preferential issue and confirmed its eligibility.
The proposed preferential issue of equity shares and/or warrants shall be by conversion or appropriation of the existing debt availed by the company of up to ₹1,325 crore (assuming exercise of rights attached to all warrants), it had said in the notice.
RPower's consolidated debt will reduce by ₹3,200 crore in 2021-22, the company had said.
Reliance Power Ltd, a part of the Reliance Group, is India's leading private sector power generation and coal resources company. The company has one of the largest portfolios of power projects in the private sector in India, based on coal, gas and renewable energy, with an operating portfolio of 5,945 megawatts.
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