Anil Ambani-led Reliance Power will raise Rs 1,325 crore by issuing preferential shares and warrants to its parent Reliance Infrastructure.
The company said its board of directors has approved preferential issue of upto 59.5 crore equity shares and upto 73 crore warrants convertible into equivalent number of equity shares at an issue price of Rs 10 each by conversion of debt.
“This will reduce Reliance Power standalone debt by Rs 1,325 crore and along with planned debt reduction in subsidiaries. Reliance Power consolidated debt will reduce by Rs 3,200 crore in FY22,” it said in a statement.
Reliance Infrastructure and other promoter holding in Reliance Power will increase upto 25 per cent after issue of equity shares and will further increase to over 38 per cent on conversion of warrants, benefitting 8 lakh shareholders of Reliance Infrastructure.
