New Delhi (Anish Yande): Shares of Reliance Power rose by over 3 per cent on Monday's trading session following the announcement of fundraising from Reliance Infra. Reliance Power shares opened at Rs 86.75 per share from its previous close of Rs 83.10 per share on Thursday.
The shares of the company rose to an intraday high of Rs 86.75 per share.
Shares of Reliance Power has surged 192 per cent in FY22 as compared to a rise of 6 per cent in the S&P BSE Sensex during the fiscal.
Reliance Power approves fundraising through preferential allotment:
The board of directors of Reliance Power Ltd have approved fundraising from Reliance Infrastructure through preferential allotment. The company's board approved a preferential issue amounting to 59.5 crore equity shares and warrants up to 73 crores to Reliance Infrastructure. The preferential issue and warrants would amount to Rs 1,325 crore.
The preferential issue would be convertible into an equivalent number of equity shares. The issue price is fixed at a 21.5% discount to Friday’s close of Reliance Power shares at Rs 12.74 each at BSE. The board of Reliance Power Ltd has approved the preferential issue of shares and warrants to Reliance Infra at Rs 10 per share.
According to the filing, Reliance Power's standalone debt would be reduced by Rs 1,325 crore. Through planned debt reduction in subsidiaries, Reliance Power's consolidated debt will reduce by Rs 3,200 crore in 2021-22.
Reliance Infrastructure raises funds to Rs 550.56 crore:
Following the preferential issue, the shareholding of the promoter group and Reliance Infra in Reliance Power would surge to 25% after the issue of equity shares as compared to 9.06% before the issue. The shareholding would increase to over 38% upon the conversion of the warrants.
In the previous week, Reliance Infrastructure Ltd had raised funds to Rs 550.56 crore by preferential allotment of shares. The funds raised would be utilized to reduce debt and raise funds for future growth.
Reliance Power has one of the largest portfolios of power projects with an operating portfolio of 5,945 Mega Watts. Reliance Power operates in the private sector in India generating power from coal, gas and renewable energy.
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