The fund-raising will be done through the issuance of equity shares of face value of Rs 10 and other equity-linked or convertible securities in one or more tranches.
The company, headed by Srivats Ram, plans to raise the funds through a mix of public and private offerings, rights issues and other approved routes in domestic and international markets.
The board has also authorised its fund-raising committee to determine the timing, pricing and other terms of the proposed issue.
Wheels India registered a net profit of Rs. 139 crore last year on revenues of Rs. 5124 crore.