New Delhi, Jun 13 (IANS): The Board of Directors of Reliance Power Limited has approved preferential issue of up to 59.5 crore equity shares and up to 73 crore warrants convertible into equivalent number of equity shares of the company at an issue price of Rs 10 each by conversion of debt, aggregating up to Rs 1 ,325 crore to Reliance Infrastructure Limited, a listed promoter company.

The Board of Directors of Reliance Infrastructure Limited (Reliance Infra) at its meeting on Sunday approved the subscription of the preferential issue.

This will reduce Reliance Power standalone debt by Rs 1 ,325 crore and along with planned debt reduction in subsidiaries, Reliance Power consolidated debt will reduce by Rs 3,200 crore in FY22.

Reliance Infrastructure and other promoter holding in Reliance Power will increase up to 25 per cent after issue of equity shares and will further increase to over 38 per cent on conversion of warrants, benefitting - 8 lakh shareholders of Reliance Infrastructure.

The Board also approved seeking enabling authorisations of members for issuance of (i) foreign currency convertible bonds; and (ii) securities through qualified institutions placement.

The Board approved seeking approval of the members of the Company for the above through Postal Ballot. The above shall be subject to all requisite permissions, sanctions and approvals as may be necessary.

Reliance Power Limited, a part of the Reliance Group, is India's leading private sector power generation and coal resources company.

The company has one of the largest portfolios of power projects in the private sector in India, based on coal, gas and renewable energy, with an operating portfolio of 5,945 megawatts.

The Board of Directors of Reliance Infrastructure Limited (Reliance Infra) at its meeting held today approved the subscription of preferential issue of up to 59.5 crore equity shares and up to 73 crore warrants convertible into equivalent number of equity shares of Reliance Power Limited (Reliance Power), by conversion of outstanding debt including interest aggregating up to Rs. 1,325 crore.

Reliance Infrastructure Limited (Reliance Infra) is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as power, roads and metro rail in the infrastructure space and the defence sector.

Reliance Infra is a major player in providing Engineering and Construction (E&C) services for developing power, infrastructure, metro and road projects.

Reliance Infra through its SPVs has executed a portfolio of infrastructure projects such as a metro rail project in Mumbai on build, own, operate and transfer (BOOT) basis; nine road projects on build, operate and transfer (BOT) basis. Reliance Infra is also a leading utility company having presence in Power Distribution Business in Delhi.