Private equity investor Blackstone is in talks to pick up stake in the Hyderabad-based Nagarjuna Constructions.Sources close to the development said the Rs 2,871 crore firm plans to raise up to $180 million (Rs 730 crore) through the sale of fresh shares to a few financial institutions including Blackstone.
They added that the deal would take place at a premium to the ruling market price of Rs 202, which was the closing price on the BSE on Tuesday. Nagarjuna Constructions declined to comment on the matter. Blackstone CEO said the company did not comment on speculation.
The proposed issue of fresh shares follows the company’s plan to raise funds through the qualified institutional placement (QIP) route, for which Nagarjuna had received shareholder’s approval earlier this year.
In March 2007, the company had informed the BSE that it would be doing a placement to institutional shareholders at a premium of Rs 215 per share of Rs 2 paid-up value.However, the placement did not take place possibly because the company’s stock price took a sharp dip subsequently, falling from Rs 220 levels in January to less than Rs 150 in April. The stock price recovered only in July to around Rs 188 and further to around Rs 200.
The company had simultaneously taken the approval of shareholders for an issue of 25 lakh warrants to an investment company, AVSR Holdings, belonging to the promoters, also at the same price of Rs 217.
Read more in The Business Standard article.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment