Shares of Reliance Power Ltd hit their 5 per cent lower circuit limit in Friday's trade, snapping a 15-day long winning spree on profit booking. The stock fell after Reliance Power, post its much-awaited meeting on fundraising on October 3, said it would allot Rs 4,200 crore worth Foreign Currency Convertible Bonds (FCCBs), to affiliates of Värde Investment Partners on private placement basis.
The move came days 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 said the FCCBs would be convertible into 82.30 crore equity shares of Rs 10 apiece at the conversion price of Rs 51, including a premium of Rs 41 per equity share.
The Reliance Power stock fell 5 per cent to hit a low of Rs 50.97 on BSE. The FCCBs would have an ultra-low cost interest of 5 per cent per annum. They would be unsecured and have a tenure of 10-year, Reliance Power said adding that the FCCB of $1,000,000 would be equivalent to Rs 4,197.50.
"We hereby inform you that the board of directors at its meeting held today i.e., on Thursday, October 03, 2024, has approved inter-alia issue of up to $ 500 million (~INR 4,200 crore) ultra-low cost interest of 5% per annum, unsecured, 10 year long tenure Foreign Currency Convertible Bonds (FCCBs), on private placement basis to affiliates of Värde Investment Partners, LP," Reliance Power said.
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.