RELIANCE POWER GETS NOD FOR ISSUE OF SHARES AND WARRANTS

NEW DELHI: Reliance Power on Wednesday said it has received shareholders’ approval to issue shares and warrants worth ₹1,325 crore to its promoter firm Reliance Infrastructure on preferential basis.

The issue of shares and warrants to Rinfra is aimed at reducing Reliance Power’s standalone debt by ₹1,325 crore.

“The Shareholders of Reliance Power Limited (Reliance Power), through postal ballot, have approved with overwhelming majority, preferential issue of equity shares and warrants,” a company statement said.

Accordingly, it said that 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 ₹10 each by conversion of debt, aggregating up to ₹1,325 crore, to Reliance Infrastructure Ltd, a listed promoter company.

Reliance Infrastructure and other promoter group holding in Reliance Power will increase to 24.98% and shall further increase to 38.24% on conversion of warrants, benefitting 8 lakh shareholders of Reliance Infrastructure, it said.

The shareholders of Reliance Power have also approved with overwhelming majority, the raising of funds by issue of foreign currency convertible bonds and securities through qualified institutions placement.

In the postal ballot notice issued last month, the company had said it aims to be debt-free.

To meet this objective and to enhance net worth and financial position, it is proposed that existing debt facilities provided by the company’s promoter, Rinfra, be capitalised by converting or appropriating the same into equity shares and/or warrants convertible into equity shares, it had stated.