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Reliance Power on Sunday (13 June) announced that the board has approved preferential issue of upto 59.50 crore equity shares and upto 73 crore warrants convertible into equivalent number of equity shares of the company at an issue price of Rs 10 each by conversion of existing debt, aggregating upto Rs 1,325 crore to Reliance Infrastructure, a listed promoter company.
Reliance Infrastructure and other promoter holding in Reliance Power will increase stake upto 25% after issue of equity shares and will further increase to over 38% on conversion of warrants.
The fundraising will reduce Reliance Power standalone debt by Rs 1,325 crore and along with planned debt reduction in subsidiaries. Reliance Power said its consolidated debt will reduce by Rs 3200 crore in FY22.
The board also approved seeking enabling authorisations of members for issuance of foreign currency convertible bonds (FCCBs); and securities through qualified institutions placement.
Reliance Power is India's leading private sector power generation and coal resources company. On a consolidated basis, the company reported a net profit of Rs 72.56 crore in Q4 FY21 compared with net loss of Rs 4,206 crore in Q4 FY20. Net sales declined 8% to Rs 1,654.57 crore in Q4 FY21 over Q4 FY20.
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