Reliance Infrastructure on Sunday said its board has approved raising up to Rs 550.56 crore through the issue of shares on a preferential basis.

The funds raised would be utilised for general corporate purposes, to fund future growth and also to reduce debt, the company said in a statement.

“The board of directors of Reliance Infrastructure Ltd at its meeting held today (Sunday) approved raising of funds up to Rs 550.56 crore,” the statement said.

It will be done by a preferential allotment of up to 8.88 crore equity shares and/or warrants convertible into equivalent number of equity shares of the company to promoter group and VFSI Holdings Pte Ltd, an affiliate of Varde Investment Partners, the statement added.

Of the Rs 550.56 crore equity infusion, about Rs 400 crore will come from the promoter group and Rs 150 crore from Varde Group, sources said.

The board also approved seeking a go-ahead of the members of the company for the above proposal through a postal ballot. “The above shall be subject to all requisite permissions, sanctions and approvals as may be necessary,” the statement said.

Rel Infra is one of the leading infrastructure companies, developing projects through various special purpose vehicles in several high growth sectors such as power, roads and metro rail in the infrastructure space and the defence sector. PTI