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Citigroup Venture Capital International (CVCI), the investment arm of Citigroup, will buy a 17.7% stake in Coastal Projects, a Hyderabad based infrastructure company for Rs 178 crore, reports The Economic Times. The investment will be done through Client Ebene and Employee Rosehill, CVCI's Mauritius-based growth funds registered with SEBI. The report also mentions that a part of the stake acquisition would come in fresh shares.

However, when contacted by VCCircle, PR Srinivasan, Managing Director (Region Head - India), CVCI, declined to comment on the transaction saying, "that transaction has not happened. Due diligence is going on and we don't comment about transactions which are in the due diligence."

Other foreign investors who hold stake in Coastal projects include FIL (Fidelity Private Equity), Sequoia Capital and Deutsche Bank. While Deutsche Bank and Sequoia Capital hold 2.92% and 6.25% respectively, FIL holds 7.50% stake in the infrastructure firm. It is not clear if the existing investors have exited the investment.

CVCI has made investments in the infrastructure sector in India through Client Ebene and Employee Rosehill earlier as well. CVCI had invested around Rs 250 crore ($62.5 million) in Subhash Projects & Marketing Ltd (SPML), an engineering, construction and project management company in 2007. Client Ebene and Employee Rosehill together hold 15% stake in SPML.

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