The Board of Directors of Anil Ambani-backed Reliance Infrastructure Limited (RInfra), at its meeting held on Sunday, has approved the raising of funds from promoter group and VFSI Holdings Pte. Limited, an affiliate of Värde Investment Partners, LP.

The company will raise up to ₹550.56 crore by preferential allotment of up to 8.88 crore equity shares at ₹62 each, and/or warrants convertible into an equivalent number of equity shares of the company. RInfra shares were trading at ₹69.85 apiece on BSE at close Friday.

"The funds raised would be utilised for long term resources, for general corporate purposes, fund future growth and also to reduce debt. The Board approved seeking approval of the members of the company for the above proposal through Postal Ballot," RInfra said in a press release.

The company has been selling assets in a bid to bring down its overall debt. In FY'21, the standalone debt reduced by 33 per cent to ₹3,808 crore vis-a-vis ₹5,701 crore in FY'20. The company said it aims to be zero debt by the end of FY'22 based of liquidity events. RInfra's consolidated income during the January-March quarter increased to ₹4,610.72 crore over ₹4,012.87 crore in the year-ago period.

Reliance Infrastructure is present in several high growth sectors such as power, roads and metro rail in the infrastructure and defence sectors.

RInfra, through its SPVs, has executed a portfolio of infrastructure projects such as a metro rail project in Mumbai on a build, own, operate and transfer (BOOT) basis; nine road projects on build, operate and transfer (BOT) basis. RInfra also has a presence in the power distribution business in Delhi.

According to sources, the promoter group will pump in ₹400 crore while Varde will get equity worth ₹150 crore. Once the fundraise is completed promoter group will own 23 per cent in RInfra while Varde will own 7 per cent. About 70 per cent will be with the public.

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