Anil Ambani's Reliance Power shares plunge by 5% a day after company announces...

Anil Ambani's Reliance Power shares had been rising for the past few days. The share closed at Rs 53.64 with a nearly 5 per cent hike on Thursday, October 3. However, it declined by 5 per cent to lower circuit amid a market sell-off on Friday, October 4. It closed at Rs 50.95 on the NSE with a Rs 2.69 reduction (5.01%). The market cap of the company recorded Rs 20471 crore in the last trading session of this week. Earlier, from September 3 to October 3, the share hit over 80% from Rs 29.58 to Rs 53.64.

The decline in the share price comes a day after the Reliance Group company announced a Rs 4,200 crore Foreign Currency Convertible Bonds (FCCBs) issuance on October 3. "Reliance Power Board approves raising USD 500 million (INR 4,200 crore) through ultra-low interest of 5 per annum pa, 10 years long tenured Unsecured Foreign Currency Convertible Bonds (FCCBs)," it said.

The RPower declared a surprisingly low annual interest rate of 5 per cent on their FCCBs. These unsecured bonds will have a lifespan of a decade. The FCCBs will be issued to affiliates of Varde Investment Partners, LP, which is a leading Global Alternative Investment Firm, Reliance Power said. The FCCBs will be convertible into equity shares at Rs 51 per share.

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