Reliance Infrastructure to raise up to Rs 550 cr from Anil Ambani group, Varde Investment

Reliance Infrastructure's Board of Directors approved a fundraise of up to Rs 550.56 crore from its promoter, the Anil Ambani group, and Varde Investment on Sunday, June 6. The promoter group and VFSI Holdings Pte. Limited, an affiliate of Värde Investment Partners, LP, would get a preferential allotment of up to 88.8 million equity shares and/or warrants convertible into an equivalent number of shares, said the company.  The funds obtained would be used for long-term resources, general corporate objectives, growth potential, and reducing the company's debt.

Reliance Infra Board meeting

In a meeting conducted today, the Board recommended seeking shareholder approval by a postal ballot, said reports. The money-raising will be subject to any and all relevant licences, sanctions, and approvals. Following the issuance, the promoter's interest will climb to 23%, while Varde will hold 7%. The public and the institutions will own the remaining shares.

Reliance Infrastructure is one of the major infrastructure businesses, with projects in many high-growth areas such as power, roads, and metro rail in the infrastructure space, as well as the defence industry, developed through multiple Special Purpose Vehicles (SPVs). RInfra is a prominent player in the development of electricity, infrastructure, metro, and road projects, offering Engineering & Construction (E&C) services. RInfra is also a leading utility company with operations across the entire power value chain, including generation, transmission, distribution, and power trading.

Reliance Infra Share

With expertise in operating and building highways, metro rail, airports, and real estate, RInfra has a major presence in the infrastructure market. RInfra is also India's first private company to build and operate metro rail systems. The first rail project in Mumbai, the Mumbai Metro One of the Versova-Andheri-Ghatkopar (VAG) line, provides East-West connection to lakhs of commuters. It has cut commuters' journey time from 120 minutes to 21 minutes and improved their commuting experience.

Varde Investment Partners

According to the companies official website, Värde Partners is a global alternative investment adviser with a focus on credit and distressed investments. Värde focuses on unlocking value at a fundamental level — Värde means value in Swedish. The firm looks for opportunities in less efficient markets and assets that are undervalued compared to their underlying or potential value, all with the goal of creating value for its investors while also empowering the common good. Corporate and sovereign credit, restructurings, real estate, mortgages, private equity, and direct lending are among the investments.

Picture Credit: PTI/Twitter @RInfraOfficial