Reliance Infrastructure Limited to raise stake in Reliance Power Ltd through debt conversion

The Board of Directors of Reliance Infrastructure Limited (Reliance Infra) at its meeting held today approved the subscription of preferential issue of up to 59.5 crore equity shares and up to 73 crore warrants convertible into equivalent number of equity shares of Reliance Power Limited (Reliance Power), by conversion of outstanding debt including interest aggregating up to Rs. 1,325 crore.

The Preferential Issue by Reliance Power shall be made at an Issue Price of Rs. 10 per Share, as per SEBI (ICDR) Regulations.

Shareholding of Reliance Infra and promoter group in Reliance Power will increase to ~25% after the issue of equity shares and will further increase to over 38% post conversion of warrants.

Reliance Power is India's leading private sector power generation and coal resources company. Reliance Power 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.

Subscription to preferential Issue will be huge value creator for ~ 8 lakhs shareholders of Reliance Infra.

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

Shares of RELIANCE INFRASTRUCTURE LTD. was last trading in BSE at Rs.83.1 as compared to the previous close of Rs. 84.75. The total number of shares traded during the day was 4644651 in over 24515 trades.

The stock hit an intraday high of Rs. 88.95 and intraday low of 81.2. The net turnover during the day was Rs. 394834388.

Source : Equity Bulls

Keywords