Reliance Power gets shareholders' approval to raise ₹1,525 crore via preferential shares

A resolution through a postal ballot notice has been passed with requisite majority, the company said in a late night stock exchange filing on Wednesday.

According to the postal ballot notice, the company will raise up to ₹1,524.60 crore by preferential issue of up to 46.20 crore equity shares and/or warrants convertible into equivalent number of equity shares at a price of ₹33 per apiece.

Reliance Infrastructure, the promoter of the company, will enhance its equity stake by over ₹600 crore. The other investors who will participate in the preferential issue include Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services.

The fresh fund would be utilised for expansion of business operations directly and/or through investment in subsidiaries and joint ventures, debt reduction and for general corporate purposes, the company said.

The preferential issue will enhance the company's net worth from about ₹11,155 crore to over ₹12,680 crore, it said.