Blackstone Group to invest 150 m dollars in NCC

Bangalore, Aug 28 (UNI) Nagarjuna Construction Company Ltd (NCC) today announced that its Board has approved an investment of 150 million dollars by The Blackstone Group funds.

NCC would raise 150 million dollars through a fresh issue of shares and convertible warrants. Blackstone, the leading global alternative asset manager and provider of financial advisory services would have representation on the Board of NCC.

Kotak Investment Banking and SSKI acted as the investment banking advisors to the Company and Blackstone, respectively, in the transaction, a NCC release said here.

Founded in 1978 by AVS Raju and currently led by his son, A Ranga Raju, NCC was the third largest construction services company in India. Through its subsidiaries owns several infrastructure assets on a build-operate-transfer basis.

Listed in Bombay Stock Exchange NCC's construction services business operates in the road, water, buildings, electrical works and irrigation segments and the Company recently expanded into the power, oil and gas and metals segments.

Commenting on the deal, Mr Ranga Raju said that "with its global reach and proactive approach, Blackstone brings immense value to the Company. This investment will not only allow us to make additional investments in public-private infrastructure projects, but will also expand our capital base, enabling us to bid for larger projects." Mr Akhil Gupta, Chairman and Managing Director of Blackstone Advisors India Pvt Ltd, said his company believed that planned infrastructure expenditure, economic growth, and urbanization will drive long term growth in India's construction sector.

Blackstone would be allotted 20,246,900 equity shares of Rs Two each at a premium of Rs 200.50 (equivalent to approximately USD 100 million) and 9,111,111 warrants (with an exercise period of 18 months) of Rs 225 per warrant, with each warrant convertible into one equity share of Rs Two each at a premium of Rs 223(equivalent to approximately USD 50 million).

An Extraordinary General Meeting of the members of the Bangalore-based Company was scheduled for September 24, in order to obtain the approval of the members.

UNI