Reliance Power has secured shareholder approval to issue shares and warrants worth Rs.1,325 crore on a preferential basis to its promoter firm Reliance Infrastructure.

Reliance Power's standalone debt will be reduced by Rs 1,325 crore as a result of the issue of shares and warrants to RInfra.

"The Shareholders of Reliance Power Limited (Reliance Power) have approved the preferential offer of equity shares and warrants with an overwhelming majority", the firm stated.

Reliance Power would allot 59.50 crore equity shares and 73 crore warrants convertible into equivalent number of equity shares of the business at a price of Rs.10 each to Reliance Infrastructure Ltd, a listed promoter company, as a result of debt conversion of Rs 1,325 crore.

Reliance Infrastructure and other promoter group holdings in Reliance Power are expected to expand to 24.98 percent and then to 38.24 percent on conversion of warrants, benefiting eight lakh Reliance Infrastructure shareholders.

The offering of foreign currency convertible bonds and securities through qualifying institutions placement was also approved by Reliance Power's shareholders with an overwhelming majority.

It had been proposed that existing debt facilities provided by the company's promoter, RInfra, be capitalized by converting or appropriating the same into equity shares and/or warrants convertible into equity shares to meet this objective and to improve net worth and financial position, it stated.

RInfra had also agreed to and validated the proposed preferential issue's eligibility.

The proposed preferential issue of equity shares and/or warrants are said to be made by the conversion or appropriation of the company's current debt of up to Rs 1,325 crore (provided all warrants are exercised).

In 2021-22, RPower's aggregate debt is expected to go down by Rs 3,200 crore, according to the business.

Reliance Power Ltd, a subsidiary of the Reliance Group, is India's largest private power generation and coal resources firm. With a total operating portfolio of 5,945 megawatts, the business has one of the largest private sector power project portfolios in India, based on coal, gas, and renewable energy.