With this, Reliance Power's standalone debt will reduce by Rs 1,325 crore and along with its other planned debt reduction in subsidiaries, its consolidated debt will further fall by Rs 3,200 crore in FY22, which will reduce its debt-equity ratio to 1.80:1, a company statement said after its board meeting today.
Reliance Infrastructure and other promoter holding in Reliance Power
will increase upto 25 per cent after issue of equity shares and will further increase to over 38 per cent on conversion of warrants. As of now, the promoter owns 9.06 per cent stake in Reliance Power, as per statistics submitted to the stock exchanges for the quarter ending March this year.
The Board in a meeting held today also approved plans to issue foreign currency convertible bonds (FCCBs); and raising funds by issuing securities to qualified institutions. The proposed size of FCCB issue is up to 50 per cent of the then networth of the Company, and QIP's upto 25 per cent of the then networth.
Reliance Power runs power plants based on coal, gas and renewable energy, with an operating portfolio of 5,945 megawatts.
On June 6, the Board of Reliance Infrastructure had announced that it will raise up to Rs 550.56 crore from its promoter, the Anil Ambani
family and and Varde Investment. Of this, the Anil Ambani
family will invest Rs 400 crore – raising its stake from 5 per cent to 23 per cent while the rest will be invested by Varde Partners for a seven per cent stake. It plans to raise creeping acquisition.
Various Anil Ambani
including Reliance Communications and Reliance Naval and Engineering Ltd were dragged to the bankruptcy courts by the Indian lenders after they failed to repay their debt. While Mukesh Ambani’s Reliance Industries has emerged as the highest bidder for Reliance Infratel, a subsidiary of Reliance Communications, UV Arc has emerged as the highest bidder for Reliance Communications.
The RBI later clarified that asset reconstruction companies
cannot bid for companies
in the bankruptcy courts and the offer by UV ARC is currently pending. Reliance Naval failed to find any buyers despite breaching deadlines set under the IBC.
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