Reliance Power considering stake sale to raise funds

Anil Ambani, chairman of the Reliance Anil Dhirubhai Ambani Group

Reliance Power said on Friday it will consider raising funds, including an option of stake sale to institutional investors as the Anil Ambani-run company looks to expand its business.

The electric utility company said it is would consider multiple options including equity sale and foreign currency convertible bonds among other options at its board meeeting on October 3.

This is the second round of fund raising within days after the company part of Reliance Group approved raising 15.25 billion rupees ($183 million) through a preferential allotment.

The coal power-generating company has previously stated that it needs capital for expanding into renewable energy sector.

The Navi Mumbai, India-headquarted company had last week said that it had no debt from banks and financial institutions after settling dues of 38.72 billion rupees towards its unit.

In August, Reliance Group chairman Anil Ambani was banned from the securities market for five years and fined about $3 million by the Indian markets regulator on charges of fund diversion.