Reliance Power (NSE: RPOWER) Board has granted a preferential issue of 1525 crore.
This company also approved the preferential share for raising the maximum amount of 1,524.60 crore through the issue of 46.2 crore equity shares at a cost of the equivalent of Rs 33 for each share.
The company took this decision during the board meeting held on Monday, 23 September 2024. This issue price is at a discount of 13 percent to the company’s last trading price of 38.15 on Monday.
The company stated in an exchange filing that the preference allotment will increase the value of Reliance Power from Rs 11,155 crore to 12,680 crore.
This week Reliance Power, the Anil Ambani-owned power firm announced it has paid off its debts of 3,872.04 crore. it was related to the electricity generation firm Vidarbha Industries Power Limited.
This has reduced its obligations to financial institutions and banks to zero.
Stock Performance
On Monday, Reliance Power share rose 4.98 percent to close at Rs 38.16, while on Friday it closed at Rs 36.35 at market close. The company has informed the exchange about the issuance of preferential shares after the market closed.
Reliance Power said that Reliance Infrastructure plans to grow its equity stake by more than 600 crores in the course of the announced preferred issue.
Quick Fact
| Company name | Reliance Power |
|---|---|
| Preferential issue | ₹1,525 crore |
| Equity shares | 46.2 crore |
| Price per share | ₹33 |
| Price discount | 13% |
| Announcement date | 23 September 2024 |
| New valuation | ₹12,680 crore |
| Previous valuation | ₹11,155 crore |
| Debt repayment | ₹3,872.04 crore |
| Debt related to | Vidarbha Industries Power Limited |
| Stake increase by | ₹600 crore |
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