Reliance Power Ltd on Wednesday said the company has received shareholders’ approval to issue shares and warrants worth Rs 1,325 crore on a preferential basis to its promoter firm Reliance Infrastructure. The shareholders of Reliance Power have approved preferential issue of equity shares and warrants through postal ballot, the company said in a statement.
Accordingly, the company will allot 59.50 crore equity shares and 73 crore warrants convertible into equal number of equity shares of the company, each of Rs 10 each, as debt, aggregating to Rs 1,325 crore, to Reliance Infrastructure, a listed promoter company.
The stake of Reliance Infrastructure and other promoter group in Reliance Power will increase to 24.98 per cent and on conversion of warrants will increase to 38.24 per cent, benefiting 8 lakh shareholders of Reliance Infrastructure. The shareholders of Reliance Power have also approved securities with an overwhelming majority to raise funds by issuance of foreign currency convertible bonds and through placement of eligible institutions. In the postal ballot notice issued last month, the company had said that it aims to become debt free. RInfra had also agreed to the proposed preferential issue and confirmed its eligibility.