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Reliance Power and its subsidiaries on Wednesday signed final documents with Varde Partners to raise debt of about Rs. 1000 crowns.
The proceeds will be used to settle debt, Reliance Power said in a regulatory filing.
“The transaction is subject to the fulfillment of conditions precedent as identified in the definitive documents. The proceeds will be used to settle and repay/restructure existing debts; thereby achieving debt resolution and improving the credit profile,” the regulatory filing said.
In a deal concluded in September 2022, Varde Partners picked up about 15 percent of the equity with an investment of ₹933 million (about $117 million) in debts of Reliance Power Ltd (RPL) of businessman Anil Ambani’s group.
The RPL Board has approved the issuance of up to 60 million equity shares and/or warrants that can be converted into equity shares at an issue price of ₹15.55 per share and/or warrant, aggregating up to ₹933 crores to VFSI Holdings Pte. Limited, an affiliate of Varde Partners, according to a regulatory disclosure.
The shares will be issued through a preferential allotment on a private placement basis, RPL said in a disclosure.
In June last year, Varde Partners invested ₹550 crore in Reliance Infrastructure, a part of the Anil Ambani Group firm.
Shares ended up 2.66 percent lower to end trading on Wednesday at ₹16.45 per piece on the Belgrade Stock Exchange.
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