Reliance Power’s Bold Strategic Move: Allocates 46.20 Crore Share Worth an Impressive Rs.1,524.60 Crore.
Reliance Power has recently undertaken a significant step by Issuing 46.20 crore equity shares, valued at a remarkable Rs.1,524.60 Crore. This strategic decision reflects the company’s strong growth and market expansion focus.
Reliance Power Faces Market Volatility Amid Strategic Moves: Can I Sustain Growth?
In a significant shift for Anil Ambani’s Reliance Power Ltd, shares took a 5% hit on Friday, marking the end of a 15-day winning streak. The sharp dip followed the company’s announcement to raise Rs.4,200 Crore through Foreign Currency Convertible Bonds (FCCBs), in partnership with Varde Investment Partners. This move, aimed at strengthening its financial base, was a key decision from the board meeting held on October 3.
#Reliance is now just 7-8% above the levels reached in 2020 after the huge fund raising in #JioPlatforms
— sandip sabharwal (@sandipsabharwal) September 21, 2023
The stock got rerated due to the promise of becoming "Zero Net Debt". However subsequently they again went on a huge Capex cycle in many unrelated & new areas i.e. again… pic.twitter.com/9YEYiNiHvx
The FCCBs, totalling $500 million, carry an ultra-low interest rate of 5% per annum with a 10-year maturity, showcasing the company’s commitment to long-term growth. Additionally, Reliance Power recently executed a strategic allocation of 46.20 crore equity shares, valued at Rs.1,520.60 crore, distributed to Reliance Infrastructure and key non-promoter entities like Authum Investment and Sanatan Financial Advisory Services, further solidifying its growth ambitions in the renewable energy sector.
Despite the temporary market setback, this bold strategy signals Reliance Power’s continued efforts to secure its position and weather market fluctuations.