M&A

M&A

Authum converts RInfra, RPower debt into equity

Economic Times  

Sanjay Dangi-promoted NBFC Authum Investment & Infrastructure has invoked the guarantees issued by Anil Ambani-promoted Reliance Infrastructure (RInfra) and Reliance Power (RPower) to the erstwhile Reliance Commercial Finance (RCFL) and Reliance Home Finance (RHFL), and has converted INR 1,043 crore of debt of the two companies into equity. RInfra will issue a total of 44.3 million shares at INR 201 per share to pay back INR 891.26 crore. RPower will issue 75.9 million shares at INR 20 per share to pay back INR 152 crore of debt. Post-allotment of shares, Authum will hold 1.99% in RPower and 11.19% in RInfra. Authum had completed the takeover of RCFL and RHFL through a lender-led process in October and March, respectively. Both NBFCs had given short-term intra-corporate loans guaranteed by RInfra and RPower.