C&C Constructions to raise Rs 400-500 crore
Leading infrastructure company C&C Constructions is looking to raise about Rs 400-500 crore through sale of 30 per cent stake in one of its subsidiaries, C&C Projects, to private equity investors.
"We have started the process of fund raising and may be in 6-8 months, it should get completed. The dilution will be of about 30 per cent stake in C&C Projects," said C&C chairman, Gurjeet Singh Johar.
He added that the company is in talks with various private equity players for the stake sale.
C&C Projects, the 100 per cent owned subsidiary of the C&C Constructions, is engaged in road and highways sector projects. Johar said that his company will be investing about Rs 1,000 crore in the next two to three years on its expansion.
Primarily into the road and highways construction, C&C has also expanded into power transmission, rail freight corridor and urban infrastructure projects in the recent years, he said, adding that the company is sitting on an order book of about Rs5,400 crore.
This includes orders for laying power transmission networks in various parts of the country, construction of an Inter-state bus terminal at Mohali and works of about Rs780 crore of the rail freight corridor.
"Despite slowdown in the economy, we are aiming to clock a growth of about 40 per cent in this fiscal and about 20-25 per cent in next 2-3 years due to our healthy order book position," Johar said.
In 2010-11, the company had reported a turnover of Rs1,280 crore, while for the quarter ended September 30, 2011, its net sales stood at Rs254 crore.