In Short:
Reliance Power Ltd plans to raise ₹1,525 crore through a preferential share issue, with promoters investing ₹600 crore. This move follows Reliance Infrastructure’s approval to raise ₹6,000 crore. The funds will support business expansion, reduce debt, and enhance the company’s net worth. Reliance Power has no bank debt and aims to strengthen its presence in renewable energy.
Big Moves at **Reliance Power Ltd**
In an exciting development for **Reliance Power Ltd**, the board has greenlighted a significant fundraising initiative, aiming to raise ₹1,525 crore through a preferential issue. As a part of this strategy, the promoters are set to infuse ₹600 crore to boost the company’s growth trajectory.
Following in the Footsteps of **Reliance Infrastructure**
This announcement follows closely on the heels of **Reliance Infrastructure**, another company under the leadership of **Anil Ambani**, which recently revealed plans to raise ₹6,000 crore itself.
Details of the Raise
According to a formal statement from **Reliance Power Ltd**, the board’s decision entails the issuance of up to 46.20 crore equity shares and/or warrants convertible into the same number of equity shares, priced at ₹33 each. This strategic move is aimed at amplifying the company’s financial strength.
Promoter Involvement and Investor Participation
With **Reliance Infrastructure** leading the charge, it will increase its stake in **Reliance Power** by contributing over ₹600 crore. Other notable investors stepping in for this preferential issue include **Authum Investment and Infrastructure Ltd** and **Sanatan Financial Advisory Services**.
Utilization of Funds
The funds raised will be directed towards expanding business operations, investing in subsidiaries and joint ventures, reducing debt, and covering general corporate expenses. The goal is crystal clear: positioning **Reliance Power** for growth and sustainability.
Impact on Company Worth
This preferential issue is expected to bolster the company’s net worth, boosting it from approximately ₹11,155 crore to over ₹12,680 crore. Impressively, the statement emphasized that **Reliance Power** currently has zero bank debt, indicating a strong financial footing. This fresh capital will undeniably support the company in further engaging within the renewable energy sector.
**Reliance Infra**’s Ambitious Goals
As for **Reliance Infrastructure**, it plans to raise ₹6,000 crore through a dual approach: ₹3,014 crore via a preferential allotment of shares and another ₹3,000 crore through institutional buyers.
