Anil Ambani-led Reliance Infrastructure Ltd will raise funds from promoter group and VFSI Holdings Pte Ltd, an affiliate of Värde Investment Partners, the company said in a statement.
The company will raise up to Rs 550.56 crore by preferential allotment of up to 8.88 crore equity shares at Rs 62 each, and/or warrants convertible into an equivalent number of equity shares of the company.
The funds raised would be utilised for long term resources, for general corporate purposes, funding future growth and reducing debt.
The board of the company approved the fundraise on Sunday.
Reliance Infrastructure is developing projects through various special purpose vehicles (SPVs) in several sectors such as power, roads and metro rail in the infrastructure space and the defence sector.
It is an engineering and construction (E&C) services company for developing power, infrastructure, metro and road projects
Previously, Reliance Infrastructure through its SPVs executed a portfolio of projects such as those related to metro rail in Mumbai on build, own, operate and transfer (BOOT) basis and nine road projects on build, own and operate (BOT) basis. It also has a presence in the power distribution business in Delhi.
Värde Partners
Founded in 1993, Värde Partners has invested more than $68 billion since its inception and manages over $14 billion on behalf of a global investor base.
It invests across corporate and traded credit, real estate and mortgages, private equity and direct lending. It has more than 300 professionals across 13 offices worldwide.
In India, Värde Partners set up its office in Mumbai in 2018 and has so far invested over $1 billion in the country.
Recently, it invested Rs 1,000-1,250 crore ($135-170 million) through credit across two commercial projects of South Indian based real estate firm The Phoenix Group.
In January last year, it bought commercial building Lodha Excelus in Mumbai from the Lodha Group.
Late last year, the global player announced the final close of The Värde Dislocation Fund with more than $1.6 billion of commitments, exceeding its $1 billion target in five months of fundraising.
Last year, it also launched a $1 billion global dislocation fund that was raised through a private banking platform.