Reliance Power Shareholders Approve Preferential Issue to Reliance Infrastructure

With an overwhelming majority through postal ballot, shareholders of Reliance Power Limited (Reliance Power) have approved the Preferential Issue of Equity Shares and Warrants.

As per a statement, Reliance Power shall accordingly allot Rs 59.50 crore equity shares and 73 crore warrants convertible into an equivalent number of equity shares of the Company at a price of Rs 10 each by conversion of debt, aggregating up to Rs 1,325 crore, to Reliance Infrastructure Limited (Reliance Infrastructure), a listed promoter company. Reliance Infrastructure and other promoter group holdings in Reliance Power shall increase to 24.98 per cent and shall further increase to 38.24 per cent on the conversion of warrants, benefitting 8 lakh shareholders of Reliance Infrastructure.

Reliance Power shareholders have also approved with overwhelming majority, the raising of funds by issue of foreign currency convertible bonds up to 50 per cent of the then net-worth of the company, and securities through qualified institutions placement up to 25 per cent of the then net-worth of the company.