Mumbai, June 7: Anil Ambani-led Reliance Infrastructure Ltd is raising funds up to Rs 550.56 crore by preferential allotment of shares to reduce debt and fund future growth.

The board of directors has approved fund raising by preferential allotment of upto 8.88 crore equity shares and/or warrants convertible into equivalent number to promoter group and VFSI Holdings Pte Ltd, an affiliate of Varde Investment Partners LP.

"The funds raised will be utilised for long-term resources, general corporate purposes, fund future growth and also to reduce debt," the company said in a statement.

The board approved seeking approval of members for the proposal through ostal ballot. The issue price will be Rs 62 for each share based on SEBI's (Issue of Capital and Disclosure Requirements) Regulations).

Reliance Infrastructure Ltd is one of the largest infrastructure companies, developing projects through various special purpose vehicles in several high growth sectors like power, roads and Metro rail in the infrastructure space and the defence sector.

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