THIS IS HOW Reliance Power consolidated debt will be reduced by Rs 3.2k cr in FY22 - HIGHLIGHTS of what happened at board meeting

In a major development, the Board of Directors of Reliance Power Limited at its meeting held today i.e. 13th June 2021 has approved Preferential Issue of upto 59.5 Crore equity shares and upto 73 Crore warrants convertible into equivalent number of equity shares of the Company at an Issue Price of Rs. 10 each by conversion of debt, aggregating upto Rs.1 ,325 Crore to Reliance Infrastructure Limited, a listed promoter company. 

Further, Reliance Infra Board too has given nod to the proposal by Reliance Power.

'Reliance Power consolidated debt will reduce by Rs. 3200 Crore in FY22'

This will reduce Reliance Power standalone debt by Rs. 1,325 Crore and along with planned debt reduction in subsidiaries, Reliance Power consolidated debt will reduce by
-Rs. 3200 Crore in FY22. 

Reliance Infrastructure and other promoter holding in Reliance Power will increase upto 25% after issue of equity shares and will further increase to over 38% on conversion of warrants, benefitting - 8 lakh shareholders of Reliance Infrastructure. 

The Board also approved seeking enabling authorisations of members for issuance of

(i) foreign currency convertible bonds; and

(ii) securities through qualified institutions placement.

APPROVED

The Board approved seeking approval of the members of the Company for the above through Postal Ballot. 

HIGHLIGHTS

-RELIANCE POWER LIMITED BOARD APPROVES PREFERENTIAL ISSUE OF SHARES AND WARRANTS TO RELIANCE INFRASTRUCTURE LIMITED,THE LISTED PROMOTER COMPANY

-PREFERENTIAL ISSUE TO BE AT RS. 10 PER SHARE, AS PER SEBI (ICDR) REGULATIONS, BY CONVERSION OF RELIANCE POWER STANDALONE DEBT AGGREGATING UPTO RS. 1325 CRORE

-PREFERENTIAL ISSUE TO BE HUGE VALUE CREATOR FOR - 8 LAKH SHAREHOLDERS OF RELIANCE INFRASTRUCTURE 

- RELIANCE POWER CONSOLIDATED DEBT TO FURTHER REDUCE BY RS. 3200 CRORE IN FY22; WHICH WILL IMPROVE DEBT EQUITY RATIO TO -1.80:1; PROJECTED TO BE AMONG THE LOWEST IN THE INDUSTRY

- RELIANCE INFRASTRUCTURE AND OTHER PROMOTER SHAREHOLDING TO INCREASE UPTO 25% AFTER ISSUE OF SHARES TO FURTHER INCREASE TO OVER 38% POST CONVERSION OF WARRANTS 

FULL STATEMENT BY RELIANCE POWER: Outcome of Board Meeting

"Further to our letter dated June 9, 2021 and pursuant to Regulation 30 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulation, 2015, we hereby inform you that the Board of Directors at its meeting held today i.e. on Sunday, June 13, 2021, has approved, inter alia,

(a) Issuance of equity shares and/or warrants convertible into equity shares through preferential allotment to Reliance Infrastructure Limited;

(b) To seek enabling authorisations of members for issuance of (i) foreign currency convertible bonds; and (ii) securities through qualified institutions placement.

The Board also approved the postal ballot notice to be issued to the members seeking approval for the above matters, as appropriate.

The above shall be in terms of the applicable rules, regulations, guidelines and laws including Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018, and shall be subject to all permissions, sanctions and approvals as may be necessary under the applicable laws.

The requisite disclosure, pursuant to Para A of Schedule Ill of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulation,
2015, is enclosed as Annexure 'A'.

The meeting of the Board of Directors of the Company commenced at 4.00 P.M. and concluded at 5.30 P.M."