Tue Sep 24 08:51:07 UTC 2024: ## Reliance Power Soars on Preferential Share Issue, Plans Renewable Energy Push

**Mumbai, India:** Reliance Power shares surged by 5% on September 24th, hitting the upper circuit limit, after the company announced a preferential share issue worth Rs 1,524.60 crore. The issue, which will see promoter Reliance Infrastructure Ltd and non-promoter entities Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services Private Ltd acquiring a combined 24.95% stake, is aimed at bolstering Reliance Power’s renewable energy ambitions and overall growth strategy.

The company plans to allocate a significant portion of the proceeds towards expanding its presence in the renewable energy sector, both directly and through subsidiaries and joint ventures. It will also use a part of the funds to convert existing debt from Reliance Infrastructure, reducing its overall debt burden and strengthening its financial position.

Reliance Power emphasizes that it currently has zero bank debt on a standalone basis and is poised for further growth. The company’s commitment to renewable energy is evident in its plan to invest in various ventures, including subsidiaries and special purpose vehicles, utilizing equity, quasi-equity, and debt instruments.

The news of the preferential share issue has been met with enthusiasm by investors, with the stock rallying 67% this year, significantly outperforming the Nifty’s 19% return. Over the past 12 months, Reliance Power shares have more than doubled, rising 111% compared to the Nifty’s 31% growth.

This positive development signals Reliance Power’s commitment to sustainable growth and its focus on capitalizing on the burgeoning renewable energy market.

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