Shares of Reliance Power Ltd, which have climbed 44 per cent in past two weeks, fell over 4 per cent in Monday's trade ahead of the Anil Ambani-led company's board meeting on raising of long-term resources from domestic and/or global markets.
Reliance Power shares fell 4.33 per cent to hit a low of Rs 44.35 on BSE. A meeting of board of directors of Reliance Power is scheduled for Thursday, October 3, to consider and approve raising of long-term resources by issue of equity shares and equity-linked securities or warrants convertible into equity shares.
Reliance Power said it can also consider raising funds via preferential issue and/or qualified institutional placement (QIP). A rights issue or foreign currency convertible bonds or any other method including determination of issue price, if any and seeking members' and other approvals, as the board may deem appropriate, will be on the meeting's agenda.
The stock was recently in news after Reliance Power allotted 46.20 crore equity shares worth Rs 1,524.60 crore via a preferential issue to promoter Reliance Infrastructure Ltd and two non-promoter entities namely Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services Private Ltd (Sanjay Kothari and Meenakshi Sanjay Kothari), to expand its renewable energy portfolio.
Reliance Power intends to use a substantial portion of the proceeds, Rs 803.60 crore, towards expanding its presence in the renewable energy sector and other new business opportunities, including meeting the long term working capital requirements.
Reliance Power recently said it has zero debt from banks and financial institutions and that its networth stood at Rs 11,155 crore on a consolidated basis, as on June 30. This is after it settled all disputes with CFM Asset Reconstruction Private Limited (CFM), as it pledged 100 per cent shares of a subsidiary VIPL against the release and discharge of corporate guarantee it gave earlier.