Mumbai (Maharashtra) [India], June 14 (ANI): Anil Ambani-led Reliance Power will raise Rs 1,325 crore by issuing preferential shares and warrants to its parent Reliance Infrastructure.
The company said its board of directors has approved preferential issue of upto 59.5 crore equity shares and upto 73 crore warrants convertible into equivalent number of equity shares at an issue price of Rs 10 each by conversion of debt.
"This will reduce Reliance Power standalone debt by Rs 1,325 crore and along with planned debt reduction in subsidiaries. Reliance Power consolidated debt will reduce by Rs 3,200 crore in FY22," it said in a statement.
Reliance Infrastructure and other promoter holding in Reliance Power will increase upto 25 per cent after issue of equity shares and will further increase to over 38 per cent on conversion of warrants, benefitting 8 lakh shareholders of Reliance Infrastructure.
The board also approved seeking enabling authorisations of members for issuance of foreign currency convertible bonds and securities through qualified institutions placement.
Reliance Power says 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 megawatts.
Various Anil Ambani group companies including Reliance Communications and Reliance Naval and Engineering Ltd are facing bankruptcy courts by banks after they failed to repay their debt. (ANI)