Reliance Power on Thursday said its shareholders have approved the company’s plan to raise Rs 1,525 crore through the preferential issue of equity shares.
The proposal received shareholders’ approval with 99.5% voting in favour of the resolution, via postal ballot, the company said in a stock exchange disclosure.
Reliance Power announced its plan following the approval of the fundraising plan by the company’s board of directors on September 23.
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Under the preferential issue, the company will issue 462 million equity shares or convertible warrants at a price of Rs 33 per share.
Of the Rs 1,525 crore, Reliance Power’s promoter company, Reliance Infrastructure, will invest Rs 604 crore. The remaining Rs 900 crore will come from two other investors, Authum Investment and Infrastructure and Sanatan Financial Advisory Services, the company had stated in a media statement on September 23.
Authum will invest Rs 720 crore and Sanatan Financial will invest Rs 200 crore.
The preferential issue will enhance Reliance Power’s net worth from over Rs 11,155 crore to Rs 12,680 crore, it said. The enhanced capital will support the company’s participation in the renewable energy sector.
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The preferential issue proceeds would be utilised for expansion of business operations directly or through investment in subsidiaries and joint ventures or for general corporate purposes.
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