Reliance Power (R-Power) today said it would seek shareholders’ approval for raising more funds, via share sale to institutions or by issuing securities overseas, after spending half of the Rs 11,600 crore raised in the country’s biggest initial public offer (IPO) in 2008.
R-Power, a part of Reliance Anil Dhirubhai Ambani group, would consider a share sale to institutions for up to 15 per cent of the equity capital and an overseas securities issue for up to 10 per cent of the equity, the company said in a filing to the National Stock Exchange. At the current valuations, the company would raise around Rs 9,000 crore. The promoter holds 84.8 per cent in the company.
The proposed issue of securities may be made in one or more tranches, according to the company. As of June 30, R-Power had spent Rs 5,997.6 crore of the IPO funds, said the company.
R-Power is planning to develop over 35,000 mega watt (Mw) of projects, including three ultra mega power projects (UMPPs). Of these, only two units of the 1,200-Mw Rosa power project have taken off.
Projects like 1,200-Mw Shahpur coal power project and 200-Mw Urthing Sobla hydro power project envisage Rs 1,761.5 crore to be deployed out of the IPO proceeds. But the projects have not progressed as planned due to issues like land acquisition and non-receipt of regulatory approvals.
Projects like the 3,960-Mw Krishnapatnam UMPP and 3,960-Mw Chitrangi power project are making fast progress. According to the company, these projects are in critical stage and require immediate funds.