ReliancePower shares fell 5 per cent to their lower circuit following Anil Ambani-led company's approval of the issue of foreign currency convertible bonds (FCCBs) of up to Rs 4,200 crore to affiliates of Varde Investment Partners on a private placement basis. The Reliance Power was continuously hitting the upper circuit for the past 11 trading sessions even in the highly volatile and bear market.
According to the company, the lowest interest on the FCCBs will be 5 per cent per annum and it would be unsecured and would have a tenure of 10 years. Reliance Power's equity shares of up to about 82.30 crore will be convertible into equity shares at a conversion price of Rs 51 including a premium of Rs 41 per equity share.
The conversion price is at a premium to the floor price, which is calculated as the average of the weekly high and low prices of the closing price during the two weeks preceding the relevant date. The board of directors of the company also approved the Employee Stock Option Scheme (ESOS) by the SEBI (Share Based Employee Benefit and Sweat Equity) Regulations, 2021 subject to the approval of the members of the company.
Reliance Power Share Performance
Today's slump could also be attributed to profit booking as Reliance Power shares have skyrocketed 64 per cent in the past month.
The multi-bagger stock is up 112 per cent year-over-year, more than doubling investor capital. The Reliance Power has zoomed over 170 per cent in the past 12 months, up 50 to 30 per cent on the benchmark Nifty.
Reliance Power recently issued Rs 46.20 crore equity to promoter Reliance Infrastructure Ltd and two non-promoter entities namely Atham Investment & Infrastructure Ltd and Sanatan Financial Advisory Services Pvt Ltd to expand its renewable energy portfolio.
The company intends to use a substantial portion of the proceeds of Rs 803.60 crore towards expanding its presence in the renewable energy sector and other new business opportunities, including meeting long-term working capital requirements.
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