RInfra seeks shareholders' nod to raise Rs 550 cr on preferential basis

Reliance Infrastructure (RInfra) has sought shareholders' approval to raise up to Rs 550.56 crore through issuance of shares on a preferential basis.

On Sunday, the company's board had approved a proposal to this effect.

"Notice is hereby given to the Members of Reliance Infrastructure Ltd, for seeking consent of members of the company for transacting the special business by passing the ...resolutions through postal ballot...(for) issue of equity shares and/or warrants on preferential basis," it said in a filing to BSE on Monday.

The board is authorised to create, offer, issue and allot from time to time, in one or more tranches, up to 8.88 crore equity shares of the company and/or warrants convertible into equivalent number of shares for cash at a price of Rs 62 per equity share of Rs 10 each or such other price as may be determined, the filing said.

The company on Sunday said the funds raised would be utilised for long-term resources for general corporate purposes, to fund future growth and also to reduce debt.

Of the Rs 550.56 crore proposed to be raised, about Rs 400 crore will come from the promoter group and Rs 150 crore from Varde Group, sources said.

RInfra 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.