Tuesday, July 23, 2024

Orient Green Power Plans to Raise Rs 250 Crore

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Orient Green Power Company has announced plans to raise up to Rs 250 crore through a rights issue of equity shares to its existing shareholders. The equity shares, each with a face value of Rs 10, will be offered on a rights basis, meaning current shareholders will have the opportunity to buy additional shares at a discounted rate.

According to a BSE filing, the total amount for the rights issue will not exceed Rs 25,000 lakh (Rs 250 crore). However, details such as the rights issue ratio, the price of each share, and the record date have not yet been disclosed. Sumedha Fiscal Services Ltd and Saffron Capital Advisors Pvt Ltd, the lead managers for the issue, shared this information based on the draft letter of offer (DLOF) dated May 17, 2024.

What is a Rights Issue?

Know what is right issue

A rights issue allows a company to invite its shareholders to purchase additional shares at a discount. This method helps the company raise funds without needing to bring in new investors. Shareholders benefit by being able to buy shares at a lower price than the current market rate.

Orient Green Power is an independent power producer that primarily uses renewable energy sources, including wind energy. The funds raised through the rights issue are expected to support the company’s growth and expansion plans in the renewable energy sector.

image representing green and clean energy

The company has also sought public comments on the offer, indicating its openness to feedback and transparency in the fundraising process.

Importance of the Rights Issue

Raising funds through a rights issue is a strategic move for Orient Green Power. It allows the company to strengthen its capital base while offering existing shareholders the chance to increase their stake at a favorable price. This can be particularly beneficial in the renewable energy sector, where substantial investment is often required for growth and technological advancements.

Orient Green power raise funds through rights issue

Orient Green Power’s plan to raise Rs 250 crore through a rights issue reflects its commitment to expanding its renewable energy operations. By offering additional shares to existing shareholders at a discount, the company aims to secure necessary funds while maintaining shareholder value and involvement.

The detailed terms of the rights issue, including the ratio and price, are expected to be announced soon. This initiative underscores the company’s strategy to bolster its financial position and drive forward its renewable energy projects.

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