The board of directors of Reliance Energy Limited has approved a proposal for the infusion of new equity capital of up to INR80 billion into the company.

The Reliance Energy Group is engaged in several major projects, which are either under implementation or consideration, in power generation, transmission, and distribution, as well as infrastructure development in areas such as highways and bridges.

The new equity capital will substantially enhance Reliance Energy’s net worth, and further augment its borrowing capabilities, to enable greater participation in the major opportunities in high growth areas, thereby generating superior returns for over 1.5 million shareholders.

The new equity capital infusion is proposed through a preferential offer of equity shares and/or equity related securities to Reliance Anil Dhirubhai Ambani Group. The preferential offer, which is subject to necessary approvals from shareholders, will be made at a price of INR1,812 per share, representing a record premium of 5% to the current market price.