MUMBAI: Stock market operator Sanjay Dangi and equity investor Sanjay Kothari, both high net worth individuals, are set to infuse Rs 925 crore in Anil Ambani’s energy company, Reliance Power.
The company, which made history with India’s largest IPO of Rs 11,560 crore in 2008, aims to raise a total of Rs 1,525 crore through the issuance of fresh equity shares or convertible warrants to its promoters and select investors.This move is part of Reliance Power’s strategy to reduce debt and support its green energy initiatives.
Reliance Infrastructure, the promoter of Reliance Power, will invest Rs 600 crore, increasing its stake in the energy unit to 25% from the current 23%. According to regulatory filings from June 2024, 80% of Reliance Infra’s stake in Reliance Power is currently locked. Sanjay Dangi – who previously acquired Reliance Commercial Finance and Reliance Home Finance – will own over 6% of Reliance Power after the allotment of shares or convertible warrants worth Rs 675 crore to his investment vehicle, Authum Investment and Infrastructure. Dangi currently holds approximately 2% in Reliance Power.
Sanjay Kothari, a former executive at Enam, will invest Rs 250 crore in Reliance Power through Sanatan Financial Advisory Services, acquiring a 1.7% stake in the company. Reliance Power informed stock exchanges that it will issue 46.2 crore shares or convertible warrants at a price of Rs 33 per share. On Monday, the company’s shares closed at Rs 38 on the BSE.
The preferential issue will increase Reliance Power’s networth to Rs 12,680 crore from the current Rs 11,155 crore.
The funds raised through the preferential issue will be utilised to reduce debt, expand business operations, and support Reliance Power’s participation in the renewable energy sector, the company said Monday. The proposed investment by Dangi and Kothari suggests that investors anticipate a significant transformation in Ambani’s energy ventures. In a related development, Reliance Infra announced a fund-raising plan of Rs 6,014 crore last week.