Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  Reliance Power to issue shares, warrants worth 1,325 crore to Reliance Infra
BackBack

Reliance Power to issue shares, warrants worth ₹1,325 crore to Reliance Infra

Reliance Power shall allot 59.5 cr equity shares & 73 cr warrants convertible into equivalent number of equity shares, aggregating upto ₹1,325 cr, to Reliance Infrastructure

Reliance Power gets shareholders' nod to issue of shares, warrants worth ₹1,325 cr to RInfra. File photoPremium
Reliance Power gets shareholders' nod to issue of shares, warrants worth 1,325 cr to RInfra. File photo

Reliance Power on Wednesday said it has received shareholders' approval to issue shares and warrants worth 1,325 crore to its promoter firm Reliance Infrastructure on preferential basis.

The issue of shares and warrants to RInfra is aimed at reducing Reliance Power's standalone debt by 1,325 crore.

"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.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 14 Jul 2021, 12:51 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App