Anil Ambani gets good news ahead of Diwali, his Rs 17016 crore company receives...

Anil Ambani, Reliance Group chairman, has been hitting headlines for the past few months due to various reasons. The 65-year-old has received another piece of good news days before Diwali. His Reliance Power, which became debt-free in September this year, has received shareholders' approval to raise Rs 1,524.60 crore through the issuance of preferential shares. This comes days after his flagship firm Reliance Infrastructure Ltd announced an investment of Rs 10,000 crore over the next 10 years in a new defence project in Maharashtra.

A resolution through a postal ballot notice has been passed with the requisite majority, said Reliance Power in a late-night stock exchange filing on Wednesday. The company has a market cap is Rs 17016 crore and its shares surged 4.98 per cent on Thursday to Rs 42.36. 

According to the postal ballot notice, the company will raise up to Rs 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 Rs 33 per apiece. The preferential issue will enhance the company's net worth from about Rs 11,155 crore to over Rs 12,680 crore, it said.

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On September 23, the board of Reliance Power Ltd had approved raising Rs 1,524.60 crore through issue of preferential shares, wherein promoters will infuse Rs 600 crore into the company to advance its business.

Reliance Infrastructure, the promoter of the company, will enhance its equity stake by over Rs 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.

(With inputs from PTI)