Anil Ambani's Reliance Power to raise $183 million to expand business operations

Anil Ambani, chairman of the Reliance Anil Dhirubhai Ambani Group, attends the company's annual general meeting in Mumbai·Reuters
Reuters
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BENGALURU (Reuters) - India's Reliance Power, part of Anil Ambani's Reliance Group, said on Monday that it plans to raise up to 15.25 billion rupees ($183 million) through a preferential allotment.

The company aims to use the funds for business expansion and debt reduction.

It will raise funds by issuing 462 million shares or warrants worth 33 rupees each.

The Reliance Group-backed company named Reliance Infrastructure, Authum Investment and Infrastructure, and Sanatan Financial Advisory Services as investors in its fundraising effort.

Following the fundraising, Reliance Infrastructure will increase its equity stake in the power company by over 6 billion rupees, it added.

The power-generating company stated that the additional capital will help support its involvement in the renewable energy sector.

This comes a month after Reliance Group chairman Anil Ambani was banned from the securities market for five years and fined about $3 million by the country's markets regulator on charges of diversion of funds.

Shares of Reliance Power closed 5% higher on Monday, taking its yearly gain to nearly 64%.

($1 = 83.5300 Indian rupees)

(Reporting by Ashna Teresa Britto; Editing by Tasim Zahid)