Lodha Group firm to buy minority stake in Vascon Engineers
Advertisement

Lodha Group firm to buy minority stake in Vascon Engineers

By Swet Sarika

  • 03 Apr 2017
Lodha Group firm to buy minority stake in Vascon Engineers
Credit: Shah Junaid/VCCircle

Mumbai-based developer Lodha Group is picking up a minority stake in Pune-based engineering and construction company Vascon Engineers Ltd by subscribing to compulsorily convertible debentures.

Vascon said in a stock market disclosure it is selling a 11.43% stake to Manan Finserve Pvt. Ltd, promoted by Mangal Prabhat Lodha and Manjula Mangal Prabhat Lodha, and 1.15% to Pune-based Vinca Rosea Farms & Properties LLP.

Vascon is issuing 1.1 million debentures at Rs 1,000 apiece—a total of Rs 110 crore—to the two buyers. The debentures will carry a coupon rate of 17% per year till they are converted into equity. While 12% per year will be payable monthly, the balance 5% will be payable on the conversion date, the company said.

Advertisement

The proceeds will be used to augment growth and for other general corporate purposes.

An email query sent to the spokesperson for Vascon Engineers did not elicit a response till the time of filing this report.

Founded by R Vasudevan in 1986, Vascon Engineers has a presence in EPC and real estate sectors. Under the realty segment, it has developed residential and commercial properties, malls and hotels in Pune, Nashik, Hyderabad, Chennai and Coimbatore, among other cities. It is active in multiple realty segments, including residential, industrial, IT parks, malls and multiplexes, hospitality and community.

Advertisement

HDFC Property Fund sold bulk of its holdings in the company in 2015 and later exited the firm.

The promoters of Vascon Engineers own around 37% of the company while UTI Mutual Fund holds a 2.5% stake. Vallabh Bhansali and Aakash Bhansali of Enam Holdings own around 7%.

Vascon Engineers currently has a market capitalisation of Rs 771.24 crore.

Advertisement

Its scrip was trading at Rs 46 per share, down by 2.13%, at 1.19 pm on Wednesday in a strong Mumbai market.

Share article on

Advertisement
Advertisement
Google News Icon

Google News

Follow VCCircle on Google News for the latest updates on Business and Startup News