Reliance Power clears Rs 6,000 crore equity raise, Rs 3,000 crore NCD issue

Anil Ambani-led Reliance Power has approved a major fundraising plan involving the issuance of equity shares and non-convertible debentures (NCDs) worth a combined ₹9,000 crore. In a post-market filing on Wednesday, the company announced that its board had given the green light to raise up to ₹6,000 crore through equity instruments and another ₹3,000 crore via debentures.

The proposed equity raise will be conducted through Qualified Institutions Placement (QIP), follow-on public offer (FPO), or a combination of both. The company stated that it would seek shareholder approval to enable this capital raise. “The Board of Directors has approved seeking enabling authorisation from the members for raising funds up to ₹6,000 crore through the issuance of equity shares and/or equity linked instruments and/or other eligible securities to qualified institutional buyers by way of QIP and/or FPO or a combination thereof,” the filing read.

In addition to the equity issuance, the board also approved plans to issue secured or unsecured, redeemable, non-convertible debentures worth up to ₹3,000 crore. These would be raised in one or more tranches, either through private placement or other modes. The exact terms and conditions of both the equity and NCD issues will be determined by the board in accordance with shareholder approvals.

On the financial front, Reliance Power posted a net profit of ₹125.6 crore for the quarter ended March 31, 2025, marking a sharp turnaround from a net loss of ₹397.6 crore in the same quarter last year. Revenue from operations saw a marginal decline of 1% year-on-year to ₹1,978 crore, compared to ₹1,997 crore in the previous fiscal.

However, the company reported a massive improvement in profitability at the operating level. EBITDA jumped 1,109% to ₹589.8 crore in Q4 FY25 from ₹48.8 crore a year ago. The EBITDA margin also expanded significantly to 29.8% from 2.4% in the same period last year.

Shares of Reliance Power ended the day at ₹66.06 on the BSE, gaining ₹1.54 or 2.39%.