Reliance Power Board of Directors Approves Preference Issue of Shares and Warrants to Reliance Infra, Energy News, ET EnergyWorld
The board of directors of Reliance Infrastructure Limited (Reliance Infra) at its Sunday meeting approved the subscription of the preferential issue.
This will reduce the stand-alone debt of Reliance Power by Rs 1,325 crore and, along with the planned debt reduction in subsidiaries, the consolidated debt of Reliance Power will reduce by Rs 3,200 crore in fiscal year 22.
Reliance Infrastructure and other promoters’ stake in Reliance Power will increase to 25% after issuance of shares and further increase to over 38% upon conversion of warrants, benefiting – 8 lakh shareholders of Reliance Infrastructure.
The Board also approved the request for enabling authorizations from members for the issuance of (i) bonds convertible into foreign currencies; and (ii) securities through placement of qualified institutions.
The Board approved seeking the approval of the members of the Society for the above through a mail-in ballot. The foregoing will be subject to all required clearances, sanctions and approvals, if applicable.
Reliance Power Limited, part of the Reliance group, is India’s leading power generation and coal resource company.
The company has one of the largest portfolios of private sector energy projects in India, based on coal, gas and renewables, with an operating portfolio of 5,945 megawatts.
The board of directors of Reliance Infrastructure Limited (Reliance Infra) at its meeting held today approved the subscription of a preferential issue of up to 59.5 crore of equity shares and up to 73 crore warrants convertible into an equivalent number of equity shares of Reliance Power Limited (Reliance Power), by conversion of outstanding debt, including interest totaling up to Rs. 1325 crore.
Reliance Infrastructure Limited (Reliance Infra) is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as power, roads and metro in the infrastructure space and the defense sector.
Reliance Infra is a major player in the provision of engineering and construction (E&C) services for the development of electricity, infrastructure, metro and road projects.
Reliance Infra, through its SPVs, executed a portfolio of infrastructure projects such as a metro project in Mumbai on the basis of build, own, operate and transfer (BOOT) ; nine road projects on a build, operate and transfer (BOT) basis. Reliance Infra is also a leading utility company active in the electricity distribution sector in Delhi.