US-based private equity firm Blackstone is all set to raise its stake in Nagarjuna Construction from existing 9% to 12.2%. The company has got the Foreign Investment Promotion Board (FIPB) clearance for investing in the Hyderabad-based infrastructure firm.Blackstone had bought 9% stake in Nagarjuna Construction in July 2007. The Hyderabad-based company raised $180 million (Rs 730 crore) through the sale of fresh shares to financial institutions.
In March 2007, the company had informed 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. 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.
At the end of March 2007, the foreign fund holding in the company stood at 30.2%. The promoters hold 24.5% stake in the company. Nagarjuna Construction announced that it has secured three new orders aggregating Rs 424 crore. All these projects which include a Rs 266-crore order to construct a sewage system in Indore, are likely to be completed in the next 36 months.
Read more in The Economic Times article.
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