Reliance Power plans to raise ₹6,000 cr to expand operations

Reliance Power is planning to raise around ₹6,000 crore to expand operations, according to sources aware of the development after announcing last week that it had become a debt-free company.

The board will meet today (Monday, September 23) to consider and approve the raising of long-term funds from domestic and/or global markets, either by way of preferential issues and/or QIP and/or rights issues and/or foreign currency convertible bonds.

Reliance Power, among others, runs the 3960 MW pithead coal-based Sasan Ultra Mega Power Project in Madhya Pradesh and the 1200 MW coal-based Rosa Power Project in Uttar Pradesh. It also has a 45MW wind project in Maharashtra.


Last week Reliance Power announced that it has become a zero-debt company, on a standalone basis. On the same day, Reliance Infrastructure, also announced that the company had reduced its standalone external debt from ₹3,831 crore to ₹475 crore.

On September 19, the Reliance Infrastructure board approved a ₹6,000 crore fund raise plan, out of which, ₹3,014 crore will be raised through preferential allotment of shares, while ₹3,000 crore will be raised by QIP.

In the first phase, the company is launching ₹3,014 crore preferential placement under which 12.56 crore equity shares or convertible warrants will be issued at an issue price of ₹240 per share.

Out of this, ₹1,104 crore is being invested by the promoters through promoter company, Risee Infinity Private Limited.

Additionally, two Mumbai-based investment firms, Fortune Financial, and Florintree Innovation are going to invest ₹1,910 crore in the company. The preferential issue will enhance Reliance Infra's net worth from ₹9,000 crore to ₹12,000 crore, with near-zero debt.

The Preferential Issue proceeds would be utilized for the expansion of business operations.