The shareholders of Reliance Power Limited (Reliance Power), through postal ballot, have approved with overwhelming majority, preferential issue of equity shares and warrants.
Accordingly, Reliance Power shall allot 59.50 Crore equity shares and 73 Crore warrants convertible into equivalent number of equity shares of the Company at a price of Rs.10 each by conversion of debt, aggregating upto Rs 1,325 Crore, to Reliance Infrastructure Limited (Reliance Infrastructure), a listed promoter company.
Reliance Infrastructure and other promoter group holding in Reliance Power shall increase to 24.98% and shall further increase to 38.24 per cent on conversion of warrants, benefitting 8 lakh shareholders of Reliance Infrastructure.
The shareholders of Reliance Power have also approved with overwhelming majority, the raising of funds by issue of: (i) foreign currency convertible bonds upto 50% of the then net-worth of the Company, and (ii) securities through qualified institutions placement upto 25% of the then net-worth of the Company.
