The Board of Directors of Reliance Infrastructure Limited (RInfra) at its meeting on Monday approved raising of funds up to Rs 550.56 crore by preferential allotment of up to Rs 8.88 crore equity shares and/or warrants convertible into equivalent number of equity shares of the company to promoter group and VFSI Holdings Private Limited.

The funds raised would be utilised for long term resources, general corporate purposes, reduce debt and also to fund future growth.

The Board approved seeking approval of members of the company for the proposal through postal ballot, which shall be subject to all requisite permissions, sanctions and approvals as may be necessary.

Reliance Infrastructure Limited (RInfra) is one of the largest infrastructure companies, 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 defence sector. It is a major player in providing engineering and construction services for developing power, infrastructure, metro and road projects.

Through its SPVs, RInfra has executed a portfolio of projects such as a metro rail in Mumbai on build, own, operate and transfer (BOOT) basis; and nine road projects on build, operate and transfer (BOT) basis.

RInfra is also a leading utility company, with presence in power distribution in Delhi.