Reliance Power said that board has permitted favored issue of shares and warrants of up to Rs Rs 1,325 crore to Reliance Infrastructure Ltd (RInfra) supporter company
Reliance Power said in a statement. Special portion will ease Reliance Power's detached debt by Rs 1,325 crore and along with planned liable of reduction in subsidiaries, Reliance Power's consolidated debt will reduce by about Rs 3,200 crore in FY 22.
Upto 59.5 crore the board "has permitted favored issue of equity shares and upto 73 crore warrants convertible into equivalent number of impartiality shares of the company at an issue Price of Rs 10 each by conversion of debt, aggregating upto Rs 1,325 crore to Reliance Infrastructure Limited, a listed promoter company", the statement said.
RInfra and other promoter holding in Reliance Power will increase up to 25 per cent after issue of equity shares and will further increase to over 38 per cent on conversion of warrants, it added.
RInfra had 5.94 per cent stake in Reliance Power As per the shareholding pattern for March 2021 quarter,, and the total advertiser and promoter group shareholding stood at 9.06 per cent.
The company's board also approved raising foreign currency convertible bonds and securities through qualified institutional placement (QIP). It said it will raise foreign currency convertible bonds of up to 50 per cent of the then net worth of the company, and raise up to 25 per cent of the then net worth of the company through QIP issuance.
It said the board will seek approval of the members of the company through postal ballot. "The above shall be subject to all requisite permissions, sanctions and approvals as may be necessary," it said.
Reliance Power is a private sector power generation and coal resources company. It 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 Mega Watts.
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