Reliance Power offers Rs 1,200 crore to settle debt of VIPL power project
Reliance Power has made a Rs 1,200 crore one-time settlement (OTS) offer to the lenders of its subsidiary, Vidarbha Industries Power Ltd (VIPL), to settle the debt.
The shareholders of Reliance Power on Wednesday said it has received shareholders’ approval to issue shares and warrants worth Rs 1,325 crore to its promoter firm Reliance Infrastructure on preferential basis.
The issue of shares and warrants to Reliance Infrastructure (RInfra) aims to reduce Reliance Power’s standalone debt by Rs 1,325 crore.
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Accordingly, Reliance Power shall allot 59.50 Crore equity shares and 73 Crore warrants convertible into an equivalent number of company equity shares.
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Reliance Infrastructure and other promoter group holding in Reliance Power shall increase to 24.98% and further increase to 38.24 per cent on conversion of warrants, benefitting ~ 8 lakh shareholders of Reliance Infrastructure.
The shareholders of Reliance Power have also approved with an overwhelming majority, the raising of funds by issue of: (i) foreign currency convertible bonds upto 50% of the then net-worth of the Company, and (ii) securities through qualified institutions placement upto 25% of the then net-worth of the Company.
Reliance Power Limited, a part of the Reliance Group, is India’s leading private sector power generation and coal resources company. The company has one of the largest portfolios of power projects in the private sector in India, based on coal, gas and renewable energy, with an operating portfolio of 5,945 megawatts.
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