MUMBAI: Reliance Power, that is an element of Anil Ambani Group, plans to raise Rs 1,325 crore out of the promoters to decrease debt.
It’ll issue equity shares and convertible warrants to Reliance Infrastructure, that will determine its position in Reliance Power increase to 38 percent from the present 9 percent.
The planks of Reliance Power and Reliance Infrastructure declared the funding program on Sunday.
Reliance Power will matter 60 crore equity shares and 73 crore convertible warrants to Reliance Infrastructure at Rs 10 per year, which can be a reduction to its final closing cost of Rs 13 on Friday.
The whole funds raised will be utilized to retire Reliance Power’s debt, which stands at Rs 25,000 crore.
Last week, Reliance Infrastructure had announced plans to raise Rs 551 crore out of its promoters and global private equity finance Varde Partners.
Reliance Infrastructure’s stake in Reliance Power increases to 25% following the equity share issuance and may likewise go up to 38 percent on conversion of warrants into equity.
Reliance Power’s board also approved two additional fundraising suggestions — issuance of foreign currency convertible bonds and issuance of equity shares without warrants via qualified associations positioning (QIP).
The business has a working portfolio of 5,945MW disperse round thermalgas and renewable power.
Rel Ability to Increase Rs 1,325 cr out of RInfra to Cut debt
