Board of Reliance Power approves conversion of debt aggregating Rs 1325 cr

At meeting held on 13 June 2021

The Board of Reliance Power at its meeting held on 13 June 2021 has approved preferential issuance of up to 59.50 crore equity shares and/or up to 73 crore warrants convertible into equity shares at an issue price of Rs 10 each to Reliance Infrastructure (promoter company) on conversion of existing debt aggregating up to Rs 1325 crore.

This will reduce Reliance Power standalone debt by Rs. 1325 crore and along with planned debt reduction in subsidiaries, Reliance Power consolidated debt will reduce by Rs. 3200 crore in FY22.

Reliance Infrastructure and other promoter holding in Reliance Power will increase upto 25% after issue of equity shares and will further increase to over 38% on conversion of warrants, benefitting - 8 lakh shareholders of Reliance Infrastructure.

The Board also approved to seek enabling authorisations of members for issuance of (i) foreign currency convertible bonds; and (ii) securities through qualified institutions placement.

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