Reliance Infra to go ahead with subscription to preferential issue of Reliance Power

Reliance Infrastructure Limited (Reliance Infra) said that its board of directors sanctioned the subscription of preferential issue of up to 59.5 crore equity shares and up to 73 crore warrants convertible into an equivalent number of equity shares of Reliance Power by converting outstanding debt, which includes interest aggregating up to INR 1,325 crore.

According to the company, the preferential issue by Reliance Power will be made at an issue price of INR 10 per share.

Following the issue of equity shares, the stakes of Reliance Infra and promoter group in Reliance Power will go up to nearly 25%, and will further increase to more than 38% after conversion of warrants.

Reliance Infra to go ahead with subscription to preferential issue of Reliance Power. Photo courtesy of Free-Photos from Pixabay.

Reliance Infra said that subscription to preferential issue of shares in Reliance Power will be a huge value creator for nearly eight lakhs of its shareholders. The preferential issue subscription will be contingent on all requisite permissions, sanctions, and approvals as required.