Reliance Power Eyes $183 Mln Via Preferential Allotment Of Securities

Reliance Power Ltd. plans to raise around 1,525 crore rupees ($183 million) via the preferential allotment of securities.

The company’s board today approved issuing up to 46.2 crore shares or warrants convertible into equity shares at 33 rupees apiece, aggregating to 1,524.60 crore rupees, through preferential allotment, Reliance Power said in a stock exchange announcement.

The Indian power producer said its promoter Reliance Infrastructure Ltd. will enhance its equity stake by over 600 crore rupees. Other investors in the preferential issue are Authum Investment and Infrastructure Ltd. and Sanatan Financial Advisory Services Private Ltd., it added.

The preferential Issue will enhance Reliance Power’s networth to more than 12,680 crore rupees from over 11,155 crore rupees and the enhanced capital will support its participation in the renewable energy sector, according to the statement.

Reliance Power will use the proceeds to expand business operations directly or through investment in subsidiaries and joint ventures, debt reduction and for general corporate purposes.

The issuance will be subject to shareholders and other necessary regulatory approvals.

Note: $1 = 83.4787 Indian rupees

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