Sun Oct 06 22:13:04 UTC 2024: ## Reliance Power Shares Plunge After Fundraising Announcement
**Mumbai, October 4, 2024:** Shares of Reliance Power Ltd plummeted 5% on Friday, ending a 15-day winning streak, following profit booking triggered by the company’s fundraising announcement.
Reliance Power announced that it would allocate Rs 4,200 crore worth of Foreign Currency Convertible Bonds (FCCBs) to affiliates of Värde Investment Partners through private placement. This comes on the heels of the company’s recent allocation of 46.20 crore equity shares, worth Rs 1,524.60 crore, to promoter Reliance Infrastructure Ltd and two non-promoter entities.
The FCCBs, carrying an ultra-low interest rate of 5% per annum, will be unsecured and have a 10-year tenure. They will be convertible into 82.30 crore equity shares at a conversion price of Rs 51, including a premium of Rs 41 per share.
Despite this fundraising move, Reliance Power’s stock hit a low of Rs 50.97 on the BSE. The company recently stated that it has no debt from banks and financial institutions, with a consolidated networth of Rs 11,155 crore as of June 30. This follows the settlement of all disputes with CFM Asset Reconstruction Private Limited, after Reliance Power pledged 100% shares of a subsidiary against the release of a corporate guarantee.
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