Reliance Power's Strategic Capital Infusion Suits Renewable Growth

Reliance Power announced on Wednesday a successful capital raising of Rs 348.15 crore through a preferential issue of shares, aiming to bolster its renewable energy trajectory. The issuance involved 9.55 crore shares allocated to Reliance Infrastructure, the promoter, and an additional 1 crore shares to Basera Home Finance.

The shares were priced at Rs 33 each, including a premium, marking a strategic financial decision to enhance growth within the renewable sector. Furthermore, in October 2024, the company issued 46.20 crore warrants valued at Rs 1,525 crore, with a 25% upfront payment and remaining amounts due over 18 months.

This move supports Reliance Power's zero-bank debt strategy, key for maintaining a robust, unleveraged balance sheet. As part of the Reliance Group, the power company continues to uphold its position as a leading force in the private sector, with a significant portfolio including the 3,960 megawatts Sasan Power plant.

(With inputs from agencies.)