Reliance Power board approves preferential issue worth Rs 1,525 crore

Reliance Power's board of directors on Monday approved the issuance of up to 46.20 crore equity shares/warrants worth Rs 1,525 crore via preferential allotment mode.

The board has set the issue price at Rs 33 per share.

The issue price of equity shares/warrants is at a discount of 13% over Monday's closing price of Rs 38.15 on the NSE. The announcement was made after market hours and Reliance Power shares on Monday ended with gains of Rs 1.81 or 4.98% over the previous closing price.


Reliance Infrastructure Limited, the promoter of the company, will enhance its equity stake by over Rs 600 crore, a company filing said. The other investors in the preferential issue are Authum Investment and Infrastructure Limited and Sanatan Financial Advisory Services Private Limited.

The proceeds from the preferential issue will be utilised to expand business operations directly and/or through investment in subsidiaries and joint ventures, debt reduction and for general corporate purposes, the filing said.