A block deal involving shares worth Rs 357 crore of Reliance Power took place on the exchanges on September 25. Around 8.6 crore shares, representing a 2.1 percent stake in Reliance Power changed hands at a floor price of Rs 42 apiece, implying an upside to the previous closing price.
Moneycontrol could not immediately ascertain the buyers and sellers in the deal.
Following the block deal at 10 am, shares of the power player gained over one percent on the NSE, to quote Rs 40.46 apiece.
The large deal also triggered a spike in volumes in the counter as 22 crore shares changed hands on the bourses, a meteoric rise from the one month daily traded average of five crore shares.
Follow our live blog to catch all the updates
In the previous session, shares of Reliance Power hit the 5 percent upper circuit after the Anil Ambani-led company announced a preferential issue of 46.2 crore equity shares worth Rs 1,524.60 crore at Rs 33 per share, a 14 percent discount to the September 23 closing price.
Reliance Power said it is a zero bank debt on standalone basis and looking poised to venture into new horizons of growth. In particular, the company intends to expand its presence in the renewable energy sector, directly and also through its special purpose vehicles and subsidiaries.
In order to augment long-term resources, enhancing net worth and financial position, reduction of existing debt, ensuring long-term viability and growth and expansion including to meet the long-term working capital requirement and for general corporate purposes, it proposed to issue fresh capital into the company, to ensure enhancing of the shareholder value, it added.
Reliance Power plans to allocate a significant portion of the Rs 803.60 crore proceeds to bolster its renewable energy initiatives and explore new business ventures, including addressing long-term working capital needs.
The company aims to invest in or support its subsidiaries, special purpose vehicles, and joint ventures through various financial instruments such as equity, quasi-equity, and secured or unsecured debt.
Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
