Shares of Reliance Power Ltd have been in the spotlight following the announcement of a ₹1,525 crore preferential issue. This issue involves the sale of 46.2 crore equity shares at ₹33 per share, which is a 14% discount compared to the previous day’s closing price.
Breakdown of the Issue
The preferential issue will be made to promoter Reliance Infrastructure Ltd as well as non-promoter entities like Authum Investment and Sanatan Financial Advisory Services.
- Reliance Infrastructure will hold a 24.88% stake in Reliance Power after the allotment.
- Authum Investment and Infrastructure will own 6.59%, and Sanatan Financial Advisory Services will hold 1.36%.
The Reliance Power stock closed at ₹38.16 on BSE, reflecting a 4.98% gain.
Utilization of Funds
A major portion of the funds raised will be used to expand Reliance Power’s presence in the renewable energy sector. Of the total proceeds, ₹803.60 crore is allocated for investment in renewable energy and other growth opportunities. Additionally, ₹340 crore will be used to repay debt to Reliance Infrastructure, which will help the company reduce its overall debt burden.
Key Future Plans
Reliance Power has outlined its intention to expand its footprint in the renewable energy space, focusing on solar and wind projects. The company is also looking to improve its balance sheet by reducing existing debt, making it better poised for long-term growth.
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Disclaimer
The content is for informational purposes only and does not constitute financial advice. Please consult a professional advisor before making investment decisions.
