Reliance Power said it will raise Rs1,325cr by issuing preferential shares and warrants to its parent
Reliance Infrastructure.
According to the regulatory filing, the Company is an existing promoter of Reliance Power. Subscription to preferential Issue shall be by way conversion of existing debt into 59.50 crore equity shares and 73 crore warrants convertible into an equivalent number of equity shares of Reliance Power. Pursuant to the Preferential Issue, aggregate holding of Reliance Infra will increase to 22.90% and may further increase upto 36.11% as and when all the warrants are converted into equity shares of Reliance Power.
"Further, pursuant to the Preferential Issue, aggregate promoter group shareholding will increase to 24.98% and may further increase upto 38.24% as and when all the warrants are converted into equity shares of Reliance Power.
Reliance Infrastructure Limited (Reliance Infra) is the promoter of Reliance Power. Subscription of preferential issue of equity shares and / or warrants by way of conversion of existing debt is not deemed to be a related party transaction, being at arms’ length and in terms of the provisions of Chapter V of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 [SEBI (ICDR) Regulations], RInfra said in the filing.
"This will reduce Reliance Power standalone debt by Rs1,325cr and along with planned debt reduction in subsidiaries. Reliance Power consolidated debt will reduce by Rs3,200cr in FY22," it said in a statement.
The board also approved seeking enabling authorisations of members for issuance of foreign currency convertible bonds and securities through qualified institutions placement.
Proposed acquisition would be upto 59.50 crore equity shares and upto 73.00 crore warrants convertible into equivalent number of equity shares of Reliance Power of face value of Rs.10/- per share. Pursuant to Preferential Issue, aggregate holding of Reliance Infra will increase to 22.90% and may further increase upto 36.11% as and when all the warrants are converted into equity shares of Reliance Power. Further, pursuant to Preferential Issue, aggregate promoter group share holding will increase to 24.98% and may further increase upto 38.24% as and when all the warrants are converted into equity shares of Reliance Power, Reliance Infra added.
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 megawatt.
Meanwhile, shares of Reliance Infrastructure Ltd is currently trading at Rs91.60 up by Rs4.35 or 4.99% from its previous closing of Rs87.25 on the BSE.
Reliance Power Ltd is currently trading at Rs14.03 up by Rs0.66 or 4.94% from its previous closing of Rs13.37 on the BSE.