October 4, 2024
New Delhi, India
Reliance Power Shares
Reliance Power announced on Thursday that its board has approved raising $500 million (₹4,200 crore) through Foreign Currency Convertible Bonds (FCCBs). These unsecured FCCBs will have a 5% per annum interest rate and a 10-year tenure, and they are to be issued to affiliates of Värde Investment Partners, LP, a leading global alternative investment firm. The bonds will be convertible into equity shares at ₹51 per share, providing investors an opportunity to become equity holders in the company.
Key Highlights:
- Fundraising through FCCBs:
The FCCBs, valued at $500 million, will be issued on a private placement basis and will help the company expand its business operations, reduce debt, and meet general corporate purposes. This is the second major fundraising initiative by Reliance Power, following a ₹1,525 crore fundraise via preferential allotment in September. - Employee Stock Option Scheme (ESOS):
The board also approved the implementation of an Employee Stock Option Scheme (ESOS), under which eligible employees will receive up to 22 crore equity shares. The ESOS is aimed at unlocking the earning potential of employees, aligning their compensation with the company’s growth and performance. The scheme is subject to approval by the company’s shareholders and other regulatory bodies.
Company Performance and Future Outlook:
Reliance Power, part of the Reliance Group, is one of India’s leading power generation companies, with an installed capacity of 5,340 MW, including the 4,000 MW Ultra Mega Power Project in Sasan, Madhya Pradesh. This latest fundraising effort is expected to boost the company’s financial position, enabling it to invest further in its subsidiaries and joint ventures, while also reducing debt.
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