Reliance Power to seek shareholder approval for dilution of 25 per cent of equity
13 Aug 2010
Anil Dhirubhai Ambani Group-owned Reliance Power (R-Power) is seeking shareholder approval for dilution of up to 25 per cent of the company's equity in multiple tranches.
According to the company's communication with the exchanges it would raise money in three ways: a qualified institutional placement in India, a rights issue or through an issue of overseas securities or a combination of these.
Additionally, it is seeking shareholders nod for utilisation of balance initial public offering (IPO) proceeds for two ultra power projects in Krishnapatnam in Andhra Pradesh and Chitrangi in Madhya Pradesh.
The company raised around $2.5 billion (about Rs 11,563 crore) through an IPO in early 2008.
According to R-Power's filing, of the total amount raised through the IPO nearly Rs6,000 crore had been utilised by 30 June, 2010. ''The company's two power projects of 3,960 megawatts, each at Krishnapatnam in Andhra Pradesh and Chitrangi in Madhya Pradesh are at a critical stage and have immediate fund requirements,'' the company said.
It added that the balance IPO proceeds may also be utilised for part financing the above two projects which are expected to require an outlay of around Rs40,000 crore, which includes an equity component of about Rs 10,000 crore.
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