The Bombay High Court today approved an internal merger between Anil Ambani-owned group of companies Reliance Power (RPower) and Reliance Natural Resources Ltd (RNRL) leading to RPower’s increase in net worth by over Rs 16,000 crore and an expanded shareholder base.

According to Bombay Stock Exchange filings RPower will issue and allot one equity share of Rs 10 face value for every four equity shares of Rs 5 face value of RNRL as per the scheme of arrangement.

The Economic Times reported that the merger would increase RPower's shareholders' base to over 6 million from 3.5 million at present and that RNRL's shareholders would also benefit from the substantial coal reserves and growth prospects of RPower's diversified generation portfolio of 37,000 MW.