Shares of this small-cap power generation company touched a 5% lower circuit on Friday in the early trading hours after the board approved an issuance of foreign currency convertible bonds to raise $500 million (Rs. 4,200 crores) from a leading Global Alternative Investment Firm.
Price Movement:
Reliance Power Ltd with a market capitalization of Rs. 20,474.50 crores, at 9:35 AM, shares touched a 5% lower circuit to Rs. 50.97 per share from its previous close of Rs. 53.65 per share.
What happened:
Reliance Power shares fell by 5%, reaching Rs 50.97, after the company’s board approved a plan to raise $500 million (Rs. 4,200 crores) through an issue of Foreign Currency Convertible Bonds (FCCBs) with an interest rate of 5% per year for 10 years in a private placement from leading Global Alternative Investment Firm, Värde Investment Partners, LP.
The bonds are unsecured and can be converted into 82.30 crore equity shares of Rs. 10 at a conversion price of Rs. 51, which includes a premium of Rs. 41 per share.
Financial performance:
In FY24, Reliance Power reported a revenue growth of 4.6% from Rs 7,542.6 crores in FY23 to Rs 7,892.6 crores and during the same time frame, the company widened their net losses from Rs 361.36 crores to Rs 2,242.18 crores.
Shareholding pattern:
As of the June quarter, shareholding pattern the company promoters own 23.24% stake, while Foreign institutional investors own 12.71% of the company, Domestic institutional investors own 3.06% of the company, and the retail investors hold 60.99% stake in the company.
About the Company:
Reliance Power Ltd is in the business of developing, constructing, and operating power projects in India and abroad. one gas-fired project; and twelve hydroelectric projects, six of them in Arunachal Pradesh, five in Himachal Pradesh, and one in Uttarakhand.
The company, along with its subsidiaries, holds a diverse portfolio that includes both operational power generation capacity and projects currently in development.
The company has close to 6000 MW of operational power generation assets. The company has three coal-fired projects under development.Reliance Power’s project portfolio also includes the 3,960 MW Sasan Ultra Mega Power Project (Madhya Pradesh).
Written By Arvind jv
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