Anil Ambani's Reliance Power to raise $183 mln to expand business operations

Reliance Infrastructure

23/09/2024 15:06

BENGALURU, Sept 23 (Reuters) - India's Reliance Power
 RPOL.NS , part of Anil Ambani's Reliance Group, said on Monday
that it plans to raise up to 15.25 billion rupees ($183 million)
through a preferential allotment. 
    The company aims to use the funds for business expansion and
debt reduction. 
        It will raise funds by issuing 462 million shares or
warrants worth 33 rupees each.
  
        The Reliance Group-backed company named Reliance
Infrastructure  RLIN.NS , Authum Investment and Infrastructure,
and Sanatan Financial Advisory Services as investors in its
fundraising effort.
    Following the fundraising, Reliance Infrastructure will
increase its equity stake in the power company by over 6 billion
rupees, it added.
    The power-generating company stated that the additional
capital will help support its involvement in the renewable
energy sector.
    This comes a month after Reliance Group chairman Anil Ambani
was banned from the securities market for five years and fined
about $3 million by the country's markets regulator on charges
of diversion of funds.
    Shares of Reliance Power closed 5% higher on Monday, taking
its yearly gain to nearly 64%.
    
($1 = 83.5300 Indian rupees)

 (Reporting by Ashna Teresa Britto; Editing by Tasim Zahid)
 ((AshnaTeresa.Britto@thomsonreuters.com;))