Reliance Power gets shareholder nod for Rs 1,525 crore fundraise

Reliance Power Ltd has received shareholder approval to raise Rs 1,525 crore through a preferential issue of equity shares, with an overwhelming 99.5% voting in favor of the resolution via postal ballot, according to a stock exchange disclosure.

The decision follows the board of directors' endorsement of the fundraising plan on September 23. Under the preferential issue, Reliance Power plans to issue 46.20 crore equity shares or convertible warrants at a price of Rs 33 per share.

Prominent backers in this initiative include Reliance Infrastructure, the company’s promoter, which will invest Rs 604 crore. The remaining Rs 900 crore will be contributed by two additional investors: Authum Investment and Infrastructure, committing Rs 720 crore, and Sanatan Financial Advisory Services, investing Rs 200 crore.

This capital infusion is expected to bolster Reliance Power's net worth from over Rs 11,155 crore to Rs 12,680 crore, with the company maintaining a debt-free status. The funds will primarily support Reliance Power's expansion in the renewable energy sector, with proceeds allocated for business operations, investments in subsidiaries and joint ventures, or general corporate purposes.