Infrastructure major Punj Lloyd is raising $200 million (over Rs 800 crore) through a qualified institutional placement (QIP).
The money will be used to part-fund its recent acquisition of 25% stake in Pipavav Shipyard (PSL) as well as for its planned capacity expansion. Citibank and Kotak have been appointed advisors for the placement.
The company will raise this amount by August 10, by issuing up to 1.75 crore shares at a floor price of Rs 270 per share. Following the equity placement, Punj Lloyd chairman Atul Punj’s personal holding in the company will come down to 35.5% from 38%. As a whole, the Punj family holds 53.4% in the company.
Proceeds from the QIP will also be used to part-finance capex plans. Punj Lloyd had recently announced acquisition of a 25.1% in PSL for about Rs 400 crore.
Punj Lloyd has aggressive expansion plans in high-margin businesses like upstream engineering (offshore platforms), petrochem (hydrocracker, LDPE plant), process engineering (bio-ethanol, sulphuric acid plant), power plants (coal, gas and nuclear) and civil infrastructure (SEZ/township development, metro-transportation, highway).
Showing posts with label Kotak Investment Banking. Show all posts
Showing posts with label Kotak Investment Banking. Show all posts
Wednesday, August 8, 2007
Thursday, May 31, 2007
BNP Paribas buys 50% in SREI arm for Rs 775cr
BNP Paribas, France’s largest bank, will acquire 50% stake in the equipment financing business along with insurance broking (which is being spun off into a separate company) of Kolkata-based SREI Infrastructure Finance for Rs 775 crore.
The deal, the first of its kind in the country’s booming infrastructure sector, will help SREI to unlock shareholder value.SREI is into project financing in addition to equipment financing, the main money spinner. It has Rs 5,000 crore of assets under its management.
Both the companies today signed an agreement to this effect at a press conference in the city. Kotak Investment Banking advised SREI on the transaction while Ambit Corporate Finance was BNP Paribas’ advisor.
BNP Paribas Lease will be the investment vehicle for the foreign bank into the company in which SREI will also chip in Rs 25 crore. SREI will get Rs 375 crore for transferring the infrastructure equipment and insurance broking businesses into a separate company.
Read more in The Business Standard article.
The deal, the first of its kind in the country’s booming infrastructure sector, will help SREI to unlock shareholder value.SREI is into project financing in addition to equipment financing, the main money spinner. It has Rs 5,000 crore of assets under its management.
Both the companies today signed an agreement to this effect at a press conference in the city. Kotak Investment Banking advised SREI on the transaction while Ambit Corporate Finance was BNP Paribas’ advisor.
BNP Paribas Lease will be the investment vehicle for the foreign bank into the company in which SREI will also chip in Rs 25 crore. SREI will get Rs 375 crore for transferring the infrastructure equipment and insurance broking businesses into a separate company.
Read more in The Business Standard article.
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