Reliance Power will issue 60 crore equity shares and 73 crore convertible warrants to Reliance Infrastructure at Rs 10 each, which is a discount to its last closing price of Rs 13 on Friday. The entire capital raised will be used to retire Reliance Power’s debt, which stands at Rs 25,000 crore.
A week ago, Reliance Infrastructure had announced plans to raise Rs 551 crore from its promoters and international private equity fund Varde Partners. Reliance Infrastructure’s stake in Reliance Power will increase to 25% after the equity share issuance and will further go up to 38% on conversion of warrants into equity.
Reliance Power’s board also approved two other fundraising proposals — issuance of foreign currency convertible bonds and issuance of equity shares with or without warrants via qualified institutions placement (QIP). The company has an operating portfolio of 5,945MW spread across thermal, gas and renewable energy.