Reliance Power Limited The Board of Directors of Reliance Power on Monday approved a proposal to raise Rs 1,525 crore through a preferential issue. Under this, the promoters of Reliance Power will invest Rs 600 crore in it to further the business of the company. This proposal comes a few days after Reliance Infrastructure, another company of the Anil Ambani-led group, approved a proposal to raise Rs 6,000 crore.
The promoters of the company will increase their equity stake
Reliance Power said in a statement, “The Board of Directors of Reliance Power Limited in its crucial meeting held today has approved raising of Rs 1,524.60 crore through preferential issue of 46.20 crore equity share warrants.” Reliance Infrastructure, the promoter of the company, will increase its equity stake by more than Rs 600 crore.
Where will the company use the money coming from the issue
Other investors participating in the preferential issue are Authum Investment and Infrastructure Limited and Sanatan Financial Advisory Services. The statement said, “The funds raised through the preferential issue will be used directly for expansion of business operations and investment in subsidiary companies and joint ventures, debt reduction and general corporate purposes. ” The preferential issue will significantly increase the net worth of the company.
Reliance Power shares made a new 52-week high on Monday
On Monday, Reliance Power shares hit an upper circuit of 5 percent as soon as trading began. On the first day of the week, the company closed at Rs 38.16 with a gain of Rs 1.81 (4.98%), which also became the company's new 52 week high. The 52 week low of Reliance Power shares is Rs 15.53. According to BSE data, the company's current market cap is Rs 15,328.76.
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