Beacon India Private Equity partially exits NCC

Mumbai-based Beacon India Private Equity Fund has partially exited construction company NCC Ltd by selling 1.14 per cent equity stake in the firm for Rs 20.61 crore (around $3.45 million) through bulk deals on BSE and NSE. The names of the buyers, however, have not been disclosed by the companies.

Beacon India offloaded 2.94 million equity shares representing 1.14 per cent equity stake in Blackstone-backed NCC at a price of Rs 70 per share, making 1.11x return on its two-year-old investment. The PE firm had bought shares in the company at Rs 62.69 a share in 2012. 

Following the stake sale, Beacon India's holding in NCC (formerly Nagarjuna Construction Company) has come down to 2.68 per cent from 3.86 previously, the data showed.

NCC shares were trading at 65.25 per share in early morning trading on Thursday, down 3.69 per cent from their previous close on BSE in a flat Mumbai market. 

The Hyderabad-based construction company is backed by Blackstone, ChrysCapital and ace private investor Rakesh Jhunjhunwala, among others.

NCC posted a net loss of Rs 7.3 crore in the quarter ended December 31, 2013 compared with a profit of Rs 10.8 crore in the year-ago quarter. The firm’s net revenues increased to Rs 1,488.6 crore in the December quarter compared with Rs 1,184.1 crore in the year-ago quarter.   

Apart from NCC, Beacon India -- a growth capital PE firm managed by BCP Advisors Pvt Ltd -- has investments in power transmission company A2Z Engineering, civil construction firm Bhayana Builders and non-banking finance company IndoStar Capital Finance, among others.

(Edited by Joby Puthuparampil Johnson)

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