The Board of Directors of Reliance Power Ltd. (Reliance Power) on Monday approved raising ₹1,524.60 crore by preferential issue of up to 46.20 crore equity shares and/or warrants convertible into an equivalent number of equity shares of the company at a price of ₹33 per share/warrant.

Reliance Infrastructure Ltd., the promoter of the company, will enhance its equity stake by more than ₹600 crore. The other investors in the preferential issue are Authum Investment and Infrastructure Ltd. and Sanatan Financial Advisory Services Private Ltd., Reliance Power said in a filing with exchanges.

The proceeds of the preferential issue would be utilised for expansion of business operations directly and/or through investment in subsidiaries and joint ventures, debt reduction and for general corporate purposes, it said.

Preferential issue will enhance the company’s networth from more than ₹11,155 crore to over ₹12,680 crore. “The listed entity has zero bank debt. The enhanced capital will support the company’s participation in the renewable energy sector,” it added. The board also approved issuance of postal ballot to seek shareholders’ approval for the preferential issue.