Shares of Reliance Power rose by 4.34% to ₹41.79 on the NSE at 9:38 AM, continuing the momentum from yesterday’s 5% upper circuit. The surge follows the announcement that the company will seek shareholders’ approval to raise ₹1,524.60 crore through a preferential issue of up to 46.20 crore equity shares and/or convertible warrants at a price of ₹33 per share/warrant.
This fundraise, aimed at expanding business operations, reducing debt, and general corporate purposes, will also see Reliance Infrastructure, the company’s promoter, infusing ₹600 crore. Other investors include Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services. The capital raise is expected to boost Reliance Power’s net worth from ₹11,155 crore to over ₹12,680 crore.
The e-voting process began on Tuesday and will conclude on October 23, 2024, with the results to be announced on or before October 25, 2024. The increased capital will also enhance the company’s participation in the renewable energy sector, with the company currently having zero bank debt.
