Reliance Power Limited to issue shares, warrants to Reliance Infrastructure Ltd

The Board of Directors of Reliance Power Limited at its meeting held today has approved Preferential Issue of upto 59.5 Crore equity shares and upto 73 Crore warrants convertible into equivalent number of equity shares of the Company at an Issue Price of Rs. 10 each by conversion of debt, aggregating upto Rs. 1,325 Crore to Reliance Infrastructure Limited, a listed promoter company.

This will reduce Reliance Power standalone debt by Rs. 1,325 Crore and along with planned debt reduction in subsidiaries, Reliance Power consolidated debt will reduce by ~Rs. 3200 Crore in FY22.

Reliance Infrastructure and other promoter holding in Reliance Power will increase upto 25% after issue of equity shares and will further increase to over 38% on conversion of warrants, benefitting ~8 lakh shareholders of Reliance Infrastructure.

The Board also approved seeking enabling authorisations of members for issuance of (i) foreign currency convertible bonds; and (ii) securities through qualified institutions placement.

The Board approved seeking approval of the members of the Company for the above through Postal Ballot.

The above shall be subject to all requisite permissions, sanctions and approvals as may be necessary.

Shares of RELIANCE POWER LTD. was last trading in BSE at Rs.12.74 as compared to the previous close of Rs. 12.14. The total number of shares traded during the day was 61954309 in over 50523 trades.

The stock hit an intraday high of Rs. 12.74 and intraday low of 11.54. The net turnover during the day was Rs. 780785050.

Source : Equity Bulls

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