Reliance Power's Strategic Financial Power Boost: Rs 1,524.60 Crore Raised

Reliance Power has secured approval to raise Rs 1,524.60 crore through the issuance of preferential shares. This move will bolster its equity by over Rs 1,525 crore and involves key investors like Reliance Infrastructure. The funds are earmarked for business expansion, debt reduction, and corporate purposes.

Reliance Power announced it has gained shareholder approval to raise Rs 1,524.60 crore via preferential shares issuance. This development was confirmed through a stock exchange filing on Wednesday night.

The funds will be raised through a combination of equity shares and convertible warrants, priced at Rs 33 each, totaling up to 46.20 crore units. The company's board had greenlit this financial strategy on September 23.

Reliance Infrastructure, the company's promoter, will contribute Rs 600 crore while other investors like Authum Investment and Sanatan Financial Advisory Services will participate. The capital will support business expansion, debt reduction, and general corporate activities, boosting the company's net worth from Rs 11,155 crore to over Rs 12,680 crore.

(With inputs from agencies.)