Dubai's DP World and India's National Investment and Infrastructure Fund (NIIF) have extended their existing partnership with the NIIF Master Fund investing 22.5 billion Indian rupees ($300 million) for 22.5 percent stake in Hindustan Ports Private Ltd., a wholly owned subsidiary of DP World.

NIIFL, an investment platform for international and Indian investors, anchored by the Government of India, manages over $4.3 billion of equity capital commitments across its three funds. UAE's leading wealth fund, Abu Dhabi Investment Authority (ADIA), is one of the international investors in NIIFL.

The port operator said in a statement on the London Stock Exchange that this is the fund's largest investment and will take NIIF's investment within the partnership to around $500 million.

The capital raised through the transaction will support new infrastructure development, drive supply-chain efficiencies and future growth initiatives. The investment in this combined entity will improve cargo connectivity, which will deliver cost efficiencies, the port operator said.

The transaction is expected to close in the first quarter of 2023.

Hindustan Ports operates five container terminals managing more than five million units in locations including two in Mumbai, Mundra, Chennai and Cochin in India.

(Reporting by Brinda Darasha; editing by Seban Scaria)