Reliance Energy plans second overseas issue

Company to opt for either ADR/GDR/FCCBs; board nod for 10mn shares.

Reliance Energy, the power arm of the Reliance group, is planning a second overseas equity issue. The company is looking at the option of floating an issue of American or global depository receipts or even a foreign currency convertible bond (FCCB).

The Reliance Energy board today passed a resolution authorising the issue of 10 million new underlying shares.

"We will seek shareholders' nod for the move at the forthcoming annual general meeting. This is, however, purely an enabling resolution. We have already informed the stock exchange about this," Anil Ambani, Reliance Energy chairman and managing director, said.

Reliance Energy in its earlier avatar as BSES had issued global depository receipts in 1995. Ambani's announcement comes at a time when the stake of foreign institutional investors stands at 20 per cent.

Reliance Energy had raised around Rs 3,000 crore through a mix of instruments, including a zero-coupon convertible bond. Foreign institutional investors like Sloane and Capital International had picked up significant stakes.

The repeated rounds of capital infusion over the last three months has boosted Reliance Energy's net worth to the Rs 6,500 crore. At this level it trails only two companies, its parent Reliance Industries and ICICI Bank, in net worth.

Reliance Energy has chalked out a Rs 20,000 crore investment plan over the next five years. It has earmarked around Rs 10,000 crore for the generation business, Rs 4,000 crore for transmission and Rs 6,000 crore for distribution.