Reliance Power Board Approves USD 500 Million Fundraising Through Bonds and Employee Stock Option Scheme

The board of Reliance Power has given the green light to raise up to USD 500 million, approximately Rs 4,198 crore, through bond issuance. This decision was disclosed in a regulatory filing. Additionally, an Employee Stock Option Scheme (ESOS) for all company employees received approval.

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Reliance Power plans to issue Foreign Currency Convertible Bonds (FCCBs) with a low interest rate of 5% per annum. These bonds will have a tenure of 10 years and are unsecured. The FCCBs will be offered to affiliates of Varde Investment Partners, LP, a prominent global alternative investment firm.

Employee Stock Option Scheme Details

The board also sanctioned an ESOS aimed at granting up to 22 crore equity shares valued at over Rs 1,180 crore. Each share is priced at Rs 10, representing 5% of the company's fully-diluted capital. This scheme aims to align employee earnings with the company's performance and growth.

The conversion price for the FCCBs into equity shares is set at Rs 51 per share. This move is part of Reliance Power's strategy to enhance its financial structure and support future growth initiatives.

Company Overview and Future Plans

Reliance Power Ltd, part of the Reliance Group, stands as a significant power generation entity in India. It boasts a total installed capacity of 5,340 MW, which includes the massive 4,000 MW Ultra Mega Power Project located in Sasan, Madhya Pradesh.

The ESOS is contingent upon receiving approval from shareholders and other regulatory bodies. This initiative is expected to unlock potential earnings for employees by aligning their interests with the company's success.

These strategic decisions reflect Reliance Power's commitment to strengthening its financial position while fostering employee engagement through stock options. The company continues to focus on expanding its capacity and enhancing operational efficiency.