Reliance Power share rises 5% as board to mull long-term fundraising

Reliance Power's board in a meeting on October 3 will consider raising long term resources

Reliance Power share soared as much as 5 per cent, logging an intraday high of Rs 48.55 per share on the BSE on Monday. The upmove in RPower share can be attributed to the company's board's decision to mull raising funds from domestic and/or global markets in a meeting on Thursday, October 3.

At around 12:10 PM, shares of Reliance Power were up 4.57 per cent at Rs 48.48 per share on the BSE. By comparison, the BSE Sensex traded 1.10 per cent lower at 84,627.63 around the same time.

"We wish to inform you that a meeting of the Board of Directors of the Company will be held on Thursday, October 03, 2024, inter alia, to consider and approve raising of long-term resources from domestic and/or global markets, by issue of equity shares/ equity linked securities/ warrants convertible into equity shares, by way of preferential issue and/or qualified institutional placement and/or rights issue and/or foreign currency convertible bonds or any other method including determination of issue price," the filing read.

Earlier, on September 23, Reliance Power's board had approved issuance of up to 462 million equity shares through warrants convertible into shares of the company. The issue price for the same was fixed at Rs 33 per share aggregating Rs 1524.6 crore through preferential allotment.

"The Board of Directors of Reliance Power Limited at its meeting held today has approved raising of Rs 1524.6 crore by preferential issue of upto 462 million equity shares and /or warrants convertible into equivalent number of equity shares of the Company at a price of Rs 33/- per share," the filing read.

The promoter of the company, Reliance Infrastructure, was supposed to enhance its equity stake by over Rs 600 crore. The other investors in the Preferential Issue were Authum Investment and Infrastructure Limited and Sanatan Financial Advisory Services Private Limited.

In the past one year, Reliance Power shares have gained 140.45 per cent as against BSE Sensex's rise of 30 per cent.