 "Reliance Power plans to raise ₹1,524.60 crore through a preferential issue, bolstering its net worth and expanding operations.")
Reliance Power is looking to raise Rs 1,524.60 crore through a preferential issue, pending shareholder approval. The company plans to issue up to 46.20 crore equity shares and convertible warrants at Rs 33 each. This move aims to boost its net worth from Rs 11,155 crore to over Rs 12,680 crore. The board’s decision, made on September 23, includes a Rs 600 crore investment from the promoters, Reliance Infrastructure. Other investors, like Authum Investment and Sanatan Financial Advisory Services, will also take part. The funds will be used for business expansion, debt reduction, and supporting initiatives in the renewable energy sector. E-voting ends on October 23, 2024, with results announced by October 25, 2024.
Reliance Power Plans Major Fundraising Through Preferential Issue
Reliance Power is set to acquire shareholder approval for a significant fundraising initiative aimed at raising Rs 1,524.60 crore through a preferential issue. This strategy involves the issuance of up to 46.20 crore equity shares and/or convertible warrants at a price of Rs 33 each. The company aims to boost its net worth from approximately Rs 11,155 crore to over Rs 12,680 crore with this move.
The preferential issue has garnered support from major shareholders, with Reliance Infrastructure, the promoter of Reliance Power, committing to invest Rs 600 crore. Other investors expected to participate include Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services. The funds raised will be utilized to expand business operations, invest in subsidiaries and joint ventures, reduce debt, and cover general corporate expenses.
Notably, Reliance Power currently boasts zero bank debt, indicating a solid financial foundation. The company emphasizes that the raised capital will enhance its ability to engage in renewable energy projects, aligning with its strategic focus on growth and sustainability.
The e-voting period for the shareholders’ approval began on September 24 and will conclude on October 23, 2024. The results of the postal ballot will be announced by October 25, 2024.
With this proactive approach towards funding, Reliance Power is poised for further growth and better positioning within the renewable energy sector.
Tags: Reliance Power, preferential issue, fundraising, renewable energy, equity shares, business expansion, shareholder approval
What is RPower planning to do with the Rs 1,525 crore?
RPower wants to raise Rs 1,525 crore through a preferential issue to strengthen its financial position and support its growth plans.
What is a preferential issue?
A preferential issue is when a company offers shares to a specific group of investors, usually at a fixed price, rather than selling shares to the public.
Why does RPower need shareholders’ approval?
RPower needs shareholders’ approval to proceed with the preferential issue because it involves creating new shares and changing the company’s capital structure.
How will this raise impact existing shareholders?
Existing shareholders may see their ownership percentage decrease if new shares are issued, but the funds raised could help the company grow and increase overall value.
When will the shareholders vote on this proposal?
The shareholders will vote on the proposal at the upcoming annual general meeting, where they will decide whether to approve the preferential issue.
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