Reliance Power to issue shares to VFSI Holdings at Rs 15.5; stock sinks 10%

Reliance Power said the private placement of shares will happen at Rs 15.55 apiece, which is 27 per cent lower than the company's Thursday's closing price of Rs 21.3 per share

Shares of Reliance Power tanked 9.8 per cent intra-day to Rs 19.2 apiece on the BSE in an otherwise firm market on Friday after the company said it would raise funds via private placement of shares. At 10:14 AM, the shares were down 9 per cent at Rs 19.3 as against a 0.5 per cent gain in the benchmark Sensex index.

The company, on Thursday, said that it would raise Rs 933 crore through a private placement of shares to VFSI Holdings, an affiliate of investment firm Varde Partners. This would result in VFSI picking up a 15 per cent stake