Blackstone to acquire stake in Nagarjuna Constructions
11 Jul 2007
Mumbai: Blackstone is in talks to pick up a stake in the Hyderabad-based Nagarjuna Constructions, which plans to raise up to $180 million (Rs730 crore) through the sale of fresh shares to financial institutions.
The deal is conjectured to take place at a premium to the ruling market price of Rs202, the closing price on the BSE on Tuesday.
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 Rs215 per share of Rs2 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 Rs217.
At March end, the foreign fund holding in the company stood at 30.20 per cent. The promoters hold 24.5 per cent stake.
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