RattanIndia Power board approves issuance of securities to lenders, promoters to pare debt

RattanIndia Power on Friday said its board has approved a proposal to issue securities to its lenders as well as promoter entity RR Infralands Private Ltd for paring debt.

The board of directors in its meeting held on Friday approved the issuance and allotment of the securities to Power Finance Corporation (PFC) led consortium of lenders and RR Infralands Private Ltd, the company said in a BSE filing.

The issuances are towards reduction of a portion of the debt owed by the company to the lenders and promoters, it added.

The PFC-led consortium of lenders had funded 1,350 MW, Phase - I, thermal power project in Amravati, Maharashtra.

The consortium includes PFC, Axis Bank, UCO Bank, Life Insurance Corporation of India, Bank of India, Central Bank of India, State Bank of India, Punjab National Bank, Canara Bank, United Bank of India, Syndicate Bank and REC Ltd.

The lenders would be issued 80,57,24,169 equity shares of face value Rs 10 each of the company.

Lender would also be issued 0.001 per cent, 37.69 crore optionally convertible cumulative redeemable preference shares of face value Rs 10 each.

The company will also issue 0.001 per cent, 25 crore redeemable preference shares of face value Rs 10 each.

The company will issue 0.001 per cent, 80,57,24,169 compulsorily convertible debentures of face value Rs 10 each, convertible into an equivalent number of fully paid up equity shares of face value Rs 10 to promoters' entity RR Infralands.

After issuance and allotment of the equity and preference shares as aforesaid, the paid-up share capital of the company stands increased to Rs 4385.57 crore divided into 375.86 crore equity shares of face value Rs 10 each and 62.69 crore preference shares of Rs 10 each.