By IANS
New Delhi : Having won the bid for two ultra mega power projects in the country, the Reliance-Anil Dhirubhai Ambani Group Sunday said it will inject up to Rs.80 billion ($2 billion) in its energy entity to fund large projects.
Besides the parent company, the shares are expected to be issued to the state-run Life Insurance Corp, and five other financial services firm that hold equity in the company, the group said in a statement.
“The new equity infusion of capital of up to Rs.80 billion will propel Reliance Energy into a completely new orbit, facilitating our participation in a large number of forthcoming mega projects,” chairman Anil Ambani said.
“We have a great sense of excitement at unprecedented opportunities unfolding before Reliance Energy group in high growth areas of power and infrastructure development,” he added, after the company’s board meeting.
The board of directors of the company has approved the equity infusion at a 5-percent premium over current market value, which could work out to around Rs.1,815, given its closing at Rs.1,738 on the Bombay Sock Exchange Friday.
“This sets a new trend in corporate governance and transparency, by adoption of world-class practices,” Ambani added.
Reliance Power, a subsidiary of Reliance Energy, won the 4,000-MW Krishnapatnam power project in Andhra Pradesh a few days ago and had previously bagged the Sasan power project in Madhya Pradesh with the same capacity.
“A large number of new mega infrastructure projects are also soon being put to bid to provide further impetus to the country’s rapidly accelerating economic growth,” the statement said.
Reliance Energy is engaged in several projects in areas like power generation, transmission and distribution, as well as infrastructure development in areas such as highways, bridges, metro rail and real estate.