The shareholders of Reliance Power Limited (Reliance Power), through postal ballot, have approved with overwhelming majority, preferential issue of equity shares and warrants.
Accordingly, Reliance Power shall allot 59.50 Crore equity shares and 73 Crore warrants convertible into equivalent number of equity shares of the Company at a price of Rs.10 each by conversion of debt, aggregating up to Rs 1,325 Crore, to Reliance Infrastructure Limited (Reliance Infrastructure), a listed promoter company.
Reliance Infrastructure and other promoter groups holding in Reliance Power shall increase to 24.98% and shall further increase to 38.24 percent on the conversion of warrants, benefitting ~ 8 lakh shareholders of Reliance Infrastructure.
The shareholders of Reliance Power have also approved with an overwhelming majority, the raising of funds by issue of (i) foreign currency convertible bonds up to 50% of the then net-worth of the Company, and (ii) securities through qualified institutions placement up to 25% of the then net-worth of the Company.
Reliance Power Limited, a part of the Reliance Group, is India’s leading private sector power generation and coal resources company. The company 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.