New Delhi, Jun 14 (PTI) Reliance Power board has sought shareholders' approval for a preferential issue of 59.5 crore equity shares and 73 crore warrants worth Rs 1,325 crore to its promoter firm Reliance Infrastructure, through postal ballot.
'We wish to inform you that dispatch of the Postal Ballot Notice and the Postal Ballot Form has been completed on June 14, 2021,' according to a BSE filing.
The results of the postal ballot will be announced on or before 5.00 pm on July 15.
Reliance Power's board on Sunday approved a preferential issue of 59.5 crore equity shares and 73 crore warrants worth Rs 1,325 crore to its promoter firm Reliance Infrastructure.
The company on Monday said the postal ballot notice and form are being sent to the company's members whose names appear in the Register of Members or the Register of Beneficial owners maintained by the depositories as of Friday, June 4, 2021, (cut-off date) seeking their approval through postal ballot.
According to the postal ballot notice, the proposal to issue 59.5 crore equity shares and 73 crore warrants worth Rs 1,325 crore to RInfra is listed as a special resolution.
In the postal ballot notice, the company said it aims to be debt-free.
To meet this objective and to enhance networth and financial position, it is proposed that existing debt facilities provided by the company's promoter, RInfra, be capitalised by converting or appropriating the same into equity shares and/or warrants convertible into equity shares, it stated.
RInfra has consented to the proposed preferential issue and confirmed its eligibility, it stated.
The proposed preferential issue of equity shares and/or warrants shall be by conversion or appropriation of the existing debt availed by the company of up to Rs 1,325 crore (assuming exercise of rights attached to all warrants), it said in the notice.
The proposed issue of share and warrants to RInfra will reduce Reliance Power's standalone debt by Rs 1,325 crore.
RPower's consolidated debt will reduce by Rs 3,200 crore in 2021-22.
RInfra and other promoter holding in Reliance Power will increase up to 25 per cent after issue of equity shares and will further increase to over 38 per cent on conversion of warrants, benefitting eight lakh shareholders of Reliance Infrastructure.
RPower has also sought shareholders' approval for issuance of foreign currency convertible bonds; and securities through qualified institutions placement under the postal ballot notice. PTI KKS HRS hrs