Tue Sep 24 05:11:35 UTC 2024: ## Reliance Power Soars on Preferential Share Issue, Eyeing Renewable Energy Expansion
**Mumbai, India** – Shares of Reliance Power surged 5% on Tuesday morning, hitting an upper circuit at Rs 40.05, following the company’s announcement of a preferential share issue worth Rs 1,524.60 crore. The move is expected to bolster Reliance Power’s growth plans, particularly in the renewable energy sector.
The issue will see 46.2 crore equity shares being issued at a 14% discount to Monday’s closing price, priced at Rs 33 per share. The shares will be allotted to promoter Reliance Infrastructure Ltd, along with non-promoter entities Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services Private Ltd.
Following the allotment, Reliance Infrastructure will hold a 24.88% stake in Reliance Power, increasing the overall promoter group’s shareholding to 24.95%. Authum Investment will see its stake increase to 6.59%, while Sanatan Financial Advisory Services will hold a 1.36% stake.
Reliance Power, currently debt-free on a standalone basis, emphasized its commitment to expanding its operations, particularly in the renewable energy sector. The proceeds from the preferential issue will be utilized to enhance long-term resources, reduce existing debt, and support working capital requirements.
A significant portion of the raised capital, Rs 803.60 crore, will be dedicated to expanding its renewable energy presence and exploring new business opportunities. The remaining funds will be used for general corporate purposes and to further strengthen the company’s financial position.
Reliance Power’s shares have shown strong performance over various time frames, reflecting its growth potential and attracting investor interest.
**Disclaimer:** This news article is based on the provided information and should not be considered financial advice. Investors should consult qualified financial advisors before making any investment decisions.
First Piper 