The board of Reliance Power has passed a resolution through a postal ballot notice in a late-night stock exchange filing on Wednesday confirming the market issue.
Anil Ambani news: In a matter of great news for Anil Ambani, shareholders’ of Reliance Powers have given approval to raise Rs 1,524.60 crore through the issuance of preferential shares. For the unversed, the Reliance Group chairman has been in the news due to various events including his companies becoming debt free and rise in the share prices of his companies in the Indian stock market.
Good news for Anil Ambani
The board of Reliance Power has passed a resolution through a postal ballot notice in a late-night stock exchange filing on Wednesday confirming the market issue. The company, with a market capitalization of Rs 17,016 crore, saw its shares rise by 4.98% on Thursday to Rs 42.36. As per a postal ballot notice, the company plans to raise up to Rs 1,524.60 crore through a preferential issue of up to 46.20 crore equity shares and/or warrants convertible into an equivalent number of shares at a price of Rs 33 each. This preferential issue is expected to boost the company’s net worth from approximately Rs 11,155 crore to over Rs 12,680 crore.
On September 23, the board of Reliance Power Ltd had approved raising Rs 1,524.60 crore through issue of preferential shares, wherein promoters will infuse Rs 600 crore into the company to advance its business.
Reliance Infrastructure to enhance equity stake
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 fresh fund 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 said. The preferential issue will enhance the company’s net worth from about Rs 11,155 crore to over Rs 12,680 crore, it said.
(With inputs from agencies)