Mumbai-based Beacon India Private Equity Fund has acquired 1.3 per cent stake in Blackstone and ChrysCapital-backed construction firm NCC Ltd (formerly Nagarjuna Construction Company) for around Rs 21.74 crore ($4.5 million).
The PE firm picked the stake at Rs 62.69 a share. NCC share price has almost doubled in the past one month and closed at Rs 61.45 on the BSE, down 0.41 per cent on Monday. At this price, NCC has a market cap of around Rs 1,576 crore or 60 per cent lower than the valuation at which Blackstone invested in the company.
NCC is backed by Blackstone, ChryCapital and ace private investor Rakesh Jhunjhunwala besides Norwegian sovereign wealth fund.
Both Blackstone and ChrysCapital own around 9.9 per cent stake in NCC Ltd. Blackstone had invested in the Hyderabad-based firm five years ago, arguably at the peak market valuations. It had originally invested over Rs 400 crore to pick around 10 per cent stake in NCC and had also got the right to subscribe to equity convertible warrants.
However, the firm eventually did not convert the warrants into shares within the stipulated time, blaming it on pending approval for the deal from FIPB, the nodal government body clearing foreign investments in the country.
Beacon PE Following Jhunjhunwla
This is the second public-listed firm backed by Jhunjhunwala in which Beacon has acquired shares through the market. Last month, it had picked close to 1 per cent stake in Bay Capital and Rakesh Jhunjhunwala-backed public-listed hospitality firm Sterling Holiday Resorts (India) Ltd through a secondary market transaction for Rs 4.5 crore.
Beacon has also backed diversified infrastructure player A2Z Maintenance & Engineering Services, which also raised its early round of funding (when it was private before listing in 2010) from Jhunjhunwala.
Beacon India, a growth capital PE firm, is on road to raise its second fund with a targeted corpus of $250 million.