Reliance Power gets nod to raise Rs 1,525 crore via preferential shares

Reliance Power has received shareholders' approval to raise Rs 1,524.60 crore through the issuance of preferential shares. A resolution through a postal ballot notice has been passed with the requisite majority, the company said in a stock exchange filing on Wednesday.

According to the postal ballot notice, the company will raise Rs 1,524.60 crore by preferential issue of up to 46.20 crore equity shares and/or warrants convertible into an equivalent number of equity shares at Rs 33 per apiece.

Earlier on September 23, the board of Reliance Power Ltd approved raising Rs 1,524.60 crore through the issue of preferential shares wherein promoters will infuse Rs 600 crore into the company to advance its business.

Reliance Infrastructure, the parent company, will enhance its equity stake by over Rs 600 crore. The other investors who will participate in the preferential issue include Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services.

The fresh fund would be utilized for the expansion of business operations directly and/or through investment in subsidiaries and joint ventures, debt reduction, and general corporate purposes, the company said.

The preferential issue will enhance the company's net worth from about Rs 11,155 crore to over Rs 12,680 crore, it said.