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Updated: July 16, 2025 19:51
Reliance Power Ltd declared a ambitious two-part fund-raising strategy to strengthen its financial muscles and power future growth. It will raise up to ₹60,000 crore through equity issues and another ₹30,000 crore through debentures.
Equity Infusion: Strategic Expansion and Debt Repayment
Reliance Power board has approved a preferential allotment of up to 46.2 crore equity shares and/or warrants convertible into equity shares at ₹33 per unit for ₹1,524.60 crore in the initial phase. The key points are
Promoter Reliance Infrastructure to pump in more than ₹600 crore, raising holding substantially
The other investors are Sanatan Financial Advisory Services and Authum Investment
Proceeds reserved for:
Expansion into emerging business sectors and into renewable energy
Investment in joint ventures and subsidiaries
Debt reduction and corporate purposes overall
Net worth to increase from ₹11,155 crore to ₹12,680 crore
Zero bank debt by company increases financial flexibility
Issue of Debenture: Long-Term Capital Support
Reliance Power also plans to raise ₹30,000 crore in secured, non-convertible debentures. While specifics of each tranche are due, previous issuances have comprised:
Coupon returns of around 8% with far maturity (say, 2035)
Private placement method with collateralized security
High-risk profile ICRA ratings, reflecting intention to refinance or restructure
Market Impact and Outlook
The development provided a boost to investor confidence, and the stock hit a 52-week high. The fund raising is indicative of Reliance Power's transition to become a leaner, greener, and bolder energy player.
Sources: Livemint, Economic Times, Business Today, Outlook Business, Dezerv.in