Reliance Power Ltd., promoted by Anil Ambani is again thinking to tap money market and expansion fund once again, knowing the fact that the company has recently come out with a preferential share issue recently, which was disclosed in the exchange filing on September 27, 2024. Fund raising alternatives being contemplated at the company are selling of equity and preferential shares, foreign currency convertible bonds and floating institutional offers.
It was agreed that a board meeting be held on Thursday the 3rd of October in year 2024 to discuss the possibilities of the funding methods. This discussion is the second of its kind, but the organisation’s board met on September 23, 2024, to approve a fundraising campaign of ₹1,524.60 crore through the preferential offer of up to 46.20 crore equity shares.
Prominent investors in this preferential issue are Reliance Infrastructure Limited, Authum Investment and Infrastructure Limited, Sanatan Financial Advisory Services Private Limited. The company said that the proceeds gotten from this action would be used in expanding operations, funding in subsidiaries and joint ventures, for other corporate requirements, and to clear some debts as well.
However, this fund raising campaign is being done at this time while on September 17 2023 Reliance Power had stated that it was now debt free to all the banks and other financial institutions. This financial transformation was a great achievement for the company, but it looks like Reliance Power may need more funds for expansion.
Reliance Power Ltd stock on the Bombay Stock Exchange(BSE) closed at ₹ 46.36 as on September 27, 2024, up by 4.98 % or 2.20 points for the week. Such a market performance may signal investors’ confidence in the organisation’s future outlook as it headed for this next round of fund raising.
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