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Business News/ Companies / News/  Reliance Infra to raise 550 crore from promoters, VFSI Holdings to pare debt

Anil Ambani’s Reliance Infrastructure Ltd (RInfra) on Sunday said that its board has approved raising a sum of 550.56 crore by preferential allotment of up to 88.8 million shares and/or warrants convertible into shares of the company to promoter group and VFSI Holdings Pte. Ltd, an affiliate of Värde Investment Partners LP.

The funds raised would be utilized for long-term resources, for general corporate purposes, and to fund growth as well as to reduce debt, the company said in a statement.

The shares and/or warrants will be issued at a price of 62 apiece based on Sebi (Securities and Exchange Board of India) regulations, the company added.

On Friday, shares of Reliance Infra closed at 69.85 apiece on the BSE.

“The above shall be subject to all requisite permissions, sanctions and approvals as may be necessary," the statement said.

RInfra is an infrastructure company involved with developing projects through various special purpose vehicles (SPVs) in several high growth sectors such as power, roads and metro rail in the infrastructure space and the defence sector.

RInfra is a provider of engineering and construction (E&C) services for developing power, infrastructure, metro and road projects.

RInfra, through its SPVs, has executed a portfolio of infrastructure projects such as a metro rail project in Mumbai on 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. The promoters will invest 400 crore as part of this investment, and Varde will invest 150 crore, the company said. Following the investment, the promoters will hold 23% in the company, Varde will own 7%, while 70% will be held by public investors.

RInfra has been looking to monetize its assets to reduce its debt. In January, it closed the sale of its Delhi Agra toll road project to private equity investor I Squared Capital’s Indian roads platform Cube Highways for an enterprise value of 3,600 crore.

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Swaraj Singh Dhanjal
" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
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Updated: 07 Jun 2021, 01:06 AM IST
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