- By Aditya Pratap Singh
- Thu, 24 Oct 2024 01:36 PM (IST)
- Source:JND
Relaince Power Share Price: The shares of Anil Ambani-led Reliance Power surged up to 5% to hit the upper circuit after the company received shareholders' nod to raise funds through a preferential share sale. At 1:26 pm, the stock was at Rs 42.47, up 4.99 per cent on BSE, while on NSE it was at Rs 42.36, up 4.98 per cent.
Reliance Power has said that it has received the approval of shareholders to raise Rs.1,524.60 crore through the issue of preference shares. According to documents filed with the stock exchange on Wednesday evening, a resolution was passed by the required majority through a postal ballot notice.
As per the postal ballot notice, the company will raise Rs.1,524.60 crore through preferential issue of up to 46.20 million equity shares and/or warrants convertible into an equivalent number of shares for Rs.33 each. On September 23, the board of directors of Reliance Power Ltd. approved raising Rs.1,524.60 crore through the issue of preference shares, in which promoters will contribute Rs.600 crore to take the company's business forward.
Also read: Reliance Power Shares Surge 5% After Shareholders Approve Preferential Share Sale
The company's promoter Reliance Infrastructure will increase its shareholding by over Rs.600 crore. Other investors expected to participate in the priority issue are Athum Investment and Infrastructure Limited and Sanatan Financial Advisory Services.
The company said that the fresh funds will be used directly for expanding business operations and/or through investments in subsidiaries and joint ventures, for debt reduction and general corporate purposes. The priority issue will increase the company's assets from about Rs.11,155 crore to over Rs.12,680 crore, it said.
Reliance Power Shares Performance
The shares of Relaince Power have been delivering a multi-bagger return for some time. In the last 3 months, the stock has hit the upper circuit multiple times. In last 5 days the Relaince Power share price surged over 5.3 per cent, while in the last 30 days, it jumped over 5.7 per cent, in a year it gave a return of 159 per cent.