Reliance Power seeks shareholder nod for Rs 2,000-crore QIP

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Mumbai | Published: March 2, 2018 3:42:32 AM

Reliance Power is seeking shareholders’ approval to raise up to Rs 2,000 crore through a qualified institutional placement (QIP).

Reliance Power, qualified institutional placement, Qualified Institutional Buyers, equity shares, IPOReliance Power has a total debt of Rs 29,935 crore for the year ended March 2017. It got listed on February 2008, and the stock has fallen by 84.6% since then. (Reuters)

Reliance Power is seeking shareholders’ approval to raise up to Rs 2,000 crore through a qualified institutional placement (QIP). “The Board of Directors of Reliance Power at its meeting held on Wednesday approved the Postal Ballot notice to be sent to shareholders seeking their enabling authorisation, inter alia, for raising of funds by way of issue of securities (equity shares and/or other securities convertible into equity shares) through Qualified Institutional Placement (QIP) to Qualified Institutional Buyers for an aggregate sum not exceeding Rs 2,000 crore,” the company said in a filing to exchanges. The company further said the funds raised through the QIP would be used to reduce the debt of the company, its subsidiaries and for general corporate purposes. Reliance Power has a total debt of Rs 29,935 crore for the year ended March 2017. It got listed on February 2008, and the stock has fallen by 84.6% since then.

On Thursday the stock ended the session at Rs 43.45, 2.80% below its issue price. In 2017, 43 companies raised Rs 56,152 crore through QIPs. QIP is a capital raising tool whereby a listed company can issue equity shares, wholly and partly convertible debentures, or any security other than warrants that are convertible into equity shares. But unlike in an IPO or an FPO, only institutions or qualified institutional buyers (QIBs) can participate.

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