Reliance Power gets shareholders' nod to raise Rs 1,525 cr via shares

Reliance Power said it has received shareholders' approval to raise Rs 1,524.60 crore through issuance of preferential shares.

A resolution through a postal ballot notice has been passed with requisite majority, the company said in a late night stock exchange filing on Wednesday.

According to the postal ballot notice, the company will raise up to Rs 1,524.60 crore by preferential issue of up to 46.20 crore equity shares and/or warrants convertible into equivalent number of equity shares at a price of Rs 33 per apiece.

On September 23, the board of Reliance Power Ltd had approved raising Rs 1,524.60 crore through issue of preferential shares, wherein promoters will infuse Rs 600 crore into the company to advance its business.

Reliance Infrastructure, the promoter of the company, will enhance its equity stake by over Rs 600 crore. The other investors who will participate in the preferential issue include Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services.

The fresh fund would be utilised for expansion of business operations directly and/or through investment in subsidiaries and joint ventures, debt reduction and for general corporate purposes, the company said.

The preferential issue will enhance the company's net worth from about Rs 11,155 crore to over Rs 12,680 crore, it said.