RPower promoters sell 5.42% stake in co; raise Rs 1,500 crore

New Delhi: Reliance Power's founder companies have raised Rs 1500 crore by selling a 5.42 percent stake in the Indian firm, Reliance said on Wednesday.

The sale helps India's No 2 power producer to meet a regulatory requirement mandating listed companies to make at least a quarter of their equity available for public trading.

[caption id="attachment_563824" align="alignleft" width="380"] Reliance Power's share sale was subscribed 1.6 times despite the challenges facing India's power generation. Reuters[/caption]

Billionaire Anil Ambani's group companies including Reliance Infrastructure sold a total 152 million shares at Rs 95 apiece, Reliance said, a 3 percent discount to Wednesday's closing price.

India's market regulator has asked all publicly-listed companies to ensure by June 2013 a minimum public float of 25 percent, a change that will force many controlling shareholders to pare their holdings.

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Reliance Power's share sale was subscribed 1.6 times despite the challenges facing India's power generation sector, where fuel shortages have forced many plants to run below capacity.

Reliance Power, India's second-largest power producer by market value, has two projects totaling 6,400 mega-watts at risk due to the scarcity of cheap fuel and might lose one of those due to a legal wrangle with four state governments.

Reuters