Hyderabad based construction company Nagarjuna Construction Company (NCC) has raised Rs 367.35 crore through a qualified institutional placements (QIP). The funds will be utilized to retire short term debt of the company and further investing in infrastructural projects in roads and power sector.
The issue was oversubscribed 1.8 times with NCC receiving bids from 25 investors. However, the company allotted over 2.7 crore equity share to the investors at a price of Rs 132.46.
NCC operates in sectors including housing, transportation, electrical, water and environment, irrigation, power, metals and oil & gas. Private equity major Blackstone is one of the largest institutional investors in NCC with a 9.34% stake. The private equity firm had bought the shares at Rs 200 per unit in mid-2007. With the current stake sale, Blackstone's holding will fall by a little more than 1%. The shares of NCC closed at Rs 142.30 today, up by 2.34%.
The company has posted net profit of over Rs 185 crore in the financial year ended by March 31, 2009. The first quarter turnover of the company in the fiscal 2009-10 was Rs 1002.41 crore as against Rs 972 crore in the corresponding quarter of the previous year.