Anil Ambani-led Reliance Power has taken a big step to strengthen its balance sheet and growth by announcing a large capital raising plan. The company’s board, in a meeting held on 16 July 2025, approved a fundraising of up to INR 9,000 crore through a combination of equity and debt instruments.
Breakdown of the Fundraising
The approved fundraising plan includes:
- Equity Component (INR 6,000 crore): Reliance Power will raise up to INR 6,000 crore through the issue of equity shares and/or equity-linked instruments. These can be offered through Qualified Institutions Placement (QIP), Follow on Public Offer (FPO) or a combination of both. Other modes, like preferential allotment or rights issue, have also been mentioned in regulatory filings.
- Debt Component (INR 3,000 crore): The board also approved the issue of secured or unsecured, redeemable, non-convertible debentures (NCDs) of up to INR 3,000 crore. These can be raised in one or more tranches, either on private placement or other permitted routes.
The company has clarified that the actual issue will be subject to shareholder approval and compliance with all applicable regulatory and legal requirements. The terms like pricing, timelines and tranches will be finalised later.
Reliance Power FPO: A Comeback in Motion
Reliance Power FPO and fundraising come at a time when the company is showing clear signs of financial recovery after years of turmoil. In the quarter ended 31 March 2025, the company reported a consolidated net profit of INR 125.6 crore, a big turnaround from a net loss of INR 397.6 crore in the same period of FY24.
- EBITDA surged from INR 48.8 crore to INR 589.8 crore, a 1,109% jump year on year.
- EBITDA margin improved significantly from 2.4% to 29.8%, indicating better operational efficiency.
- However, revenue from operations was down by 1% to INR 1,978 crore from INR 1,997 crore in Q4FY24.
Stock Market Response
Despite the positive fundraising and financials, the Reliance Power stock responded mixed:
16 July: Reliance Power closed 2.39% up at INR 66.06.
- 17 July: Post the announcement, the stock fell 1.6% to INR 65 intraday due to profit booking and dilution concerns.
Still, the stock has had a great run. It has risen over 130% in the last year and has outperformed BSE Sensex and Nifty by a big margin. The stock is above its 50-day and 200-day simple moving averages, indicating strong technical momentum.
Strategic Implications
Reliance Power’s fund raise is expected to:
- Strengthen its balance sheet
- Improve liquidity
- Support long-term growth in renewable energy and infrastructure segments
- Boost investor confidence after the recent profitability
The move also coincides with a broader financial clean-up across the Reliance ADAG group. Its parent company, Reliance Infrastructure, also approved a separate INR 9,000 crore fund raise on the same day, indicating a group-wide effort to strengthen group companies.
Looking Ahead
With shareholder approval pending and market conditions in flux, the timing and execution of the fundraising will be critical. If executed well, this could mark a new chapter for Reliance Power—a company once beleaguered by debt, now trying to engineer a measured comeback.
For investors, the capital raise poses a dual-edged sword: while it brings in much-needed funds and confidence, it also raises concerns about equity dilution in the short term. However, for long-term stakeholders, the latest financials and strategic direction signal cautious optimism.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.