R Power Share Price: Reliance Power shares tumble nearly 5% ahead of board meeting

Reliance Power shares broke their 8-day winning streak in today’s session.

Reliance Power shares have been in focus after the company’s board approved the issuance of up to 46.2 crore equity shares and/or warrants worth Rs 1,525 crore through a preferential allotment on Monday.

“The Board of Directors, at its meeting held on Monday, September 23, 2024, has approved the issuance of up to 46.20 crore equity shares and/or warrants convertible into equity shares at an issue price of Rs 33 per share, aggregating Rs 1,524.60 crore through preferential allotment,” the board of Reliance Power had said in a previous filing to the exchanges.

Reliance Infrastructure Limited, the company’s promoter, will increase its equity stake by over Rs 600 crore. Other investors participating in this preferential issue include Authum Investment and Infrastructure Limited and Sanatan Financial Advisory Services Private Limited.

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The funds raised from the preferential issue will be used to expand business operations, either directly or through investments in subsidiaries and joint ventures. A portion of the proceeds will also go toward reducing debt and other general corporate purposes.

Besides this, Reliance Power has confirmed that it had resolved all disputes with CFM Asset Reconstruction. In exchange for the release and discharge of Reliance Power’s guarantee, 100% of VIPL’s shares have been pledged to CFM.

The shares of Reliance Power were trading 3.6% lower at Rs 44.69 around 11 am today.

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