Reliance Power Approves Fundraise Plan Totalling Up to ₹9,000 Cr
In a significant development, Anil Ambani-led Reliance Power has approved a comprehensive fundraising plan totalling up to ₹9,000 crore. The company’s Board of Directors has given the green light to raise up to ₹6,000 crore through the issuance of equity shares, equity-linked instruments, or other eligible securities, as reported by NDTVProfit.
This massive fundraising plan is aimed at strengthening the company’s financial position and ensuring its future growth prospects. The additional funds will be used to reduce debt, invest in new projects, and enhance its overall capabilities.
The company has also outlined plans to issue secured or unsecured, redeemable, non-convertible debentures (NCDs) worth up to ₹3,000 crore. This move is expected to provide the company with the necessary liquidity to meet its financial obligations and take advantage of new business opportunities.
Reliance Power’s decision to raise funds through a combination of equity and debt is a prudent one, considering the current market conditions. The company’s move to issue NCDs will help it tap into the debt market, which is expected to be more favorable in the near future.
The fundraising plan is expected to be executed in phases, with the company planning to raise funds through a combination of primary and secondary issuance routes. The company will also explore various options to raise funds, including private placements, public issues, and institutional placements.
Reliance Power’s decision to raise funds through equity issue is also a positive sign for investors. The company’s equity shares have been underperforming in recent times, and the fundraising plan is expected to provide a boost to the stock price.
The company’s plans to issue NCDs are also expected to be well-received by investors, who are looking for a stable and predictable source of returns. NCDs offer a fixed rate of return, making them an attractive option for investors seeking a low-risk investment avenue.
Reliance Power’s fundraising plan is also expected to have a positive impact on the company’s debt-to-equity ratio. The company’s debt levels have been a concern for investors in recent times, and the fundraising plan is expected to help reduce the debt burden.
The company’s decision to raise funds through a combination of equity and debt is also expected to provide a boost to its credit profile. The fundraising plan is expected to increase the company’s creditworthiness, making it easier for the company to access credit in the future.
Reliance Power’s fundraising plan is a significant development in the Indian power sector, which has been facing challenges in recent times. The company’s decision to raise funds will provide a much-needed boost to the sector, which is expected to drive growth in the coming years.
In conclusion, Reliance Power’s approval of a comprehensive fundraising plan totalling up to ₹9,000 crore is a significant development for the company and the Indian power sector. The company’s decision to raise funds through a combination of equity and debt is expected to provide a boost to its financial position, reduce debt, and enhance its growth prospects.
