Shares of Anil Ambani-led company Reliance Power suffered a major blow on Friday amid market weakness. On October 4, the company's shares hit a lower circuit of 5 percent. The decline comes a day after the company said its board has approved the issuance of foreign currency convertible bonds (FCCBs) worth up to Rs 4,200 crore to associates of Verde Investment Partners on a private placement basis, Moneycontrol reported. Has given. Reliance Power shares are currently priced at ₹50.97 per share with 5 percent lower circuit in BSE Sensex.
This is what the company has to say
According to the news, Reliance Power has said that the Foreign Currency Convertible Bond (FCCB) will have a very low interest rate of 5 percent per annum. They will be unsecured and have a tenure of 10 years. It also said that the foreign currency convertible bonds will be converted into approximately 82.30 crore equity shares of Rs 10 each of Reliance Power at a conversion price of Rs 51, which includes a premium of Rs 41 per equity share.
The stock had jumped 73% in a month
Reliance Power shares had jumped 73 percent in the last one month. Due to debt reduction by the company and other reasons, the shares of the company have risen by 124 percent so far this year and by 186 percent in the last one year. Reliance Power had recently said that it had no outstanding loans from banks and financial institutions and its consolidated net worth as of June 30 was Rs 11,155 crore.
The Company has fully discharged all the obligations of the Company as guarantor on behalf of Vidarbha Industries Power Limited (VIPL), resulting in the discharge of the corporate guarantee, undertaking and all obligations thereunder in respect of the outstanding loan of Rs 3872.04 crore of VIPL. Release and discharge of claims have taken place.
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