Reliance Power Ltd. on Monday approved raising Rs 1,525 crore through preferential issue of shares and warrants to support the company's participation in the renewable energy sector. The company has approved issuance of upto 46.20 crore equity shares at an issue price of Rs 33 per share aggregating Rs 1,524.60 crore through preferential allotment, as per an exchange filing.
Promoter Reliance Infrastructure Ltd., to raise its stake by over Rs 600 crore. The other investors in the preferential issue are Authum Investment and Infrastructure Ltd., and Sanatan Financial Advisory Services Pvt. Ltd.
The board also approved the postal ballot notice to be issued to the members seeking approval for the above matter, as appropriate, as per the filing.
The preferential Issue proceeds would be utilised for expansion of business operations directly or through investment in subsidiaries and joint ventures, debt reduction and for general corporate purposes.
The preferential Issue will enhance the company's networth from over Rs 11,155 crore to over Rs 12,680 crore, the company said.
The listed entity has zero bank debt. The enhanced capital will support the company's participation in the renewable energy sector.
Shares of Reliance Power closed 4.98% higher at Rs 38.16 apiece, compared to a 0.45% gain in benchmark BSE Sensex.
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