INDIA BUSINESS WORLD - DECEMBER 16th - DECEMBER 31st
- 2007
CONSTRUCTION FIRM BSCPL SELLS 7% STAKE FOR RS 152 CR, L&T IDFC LEHMAN AMONG BUYERS
Engineering and construction giant Larsen and Toubro(L&T), Infrastructure Development and Finance Company (IDFC), Lehman Brothers and Singapore-based private equity (PE) firm Amansa Capital together have picked up 7% stake in Hyderabad-based construction firm B Seenaiah & Company Projects (BSCPL) for Rs 152 crore.
The Hyderabad-company seems to have trebled its valuation since last transaction, 18-20 months ago, when it sold around 19% stake to two foreign investors-New Vernon Private Equity Fund and Tiger Veda for Rs 150 crore.
Sources said L&T has routed its investment in BSCPL though its two group companies-L&T Infrastructure Finance Co and L&T Capital. The L&T-IDFC deal is the second round of private equity funding in BSCPL.
BSCPL is one of the leading construction firms in road and irrigation projects in India. BSCPL, which has established foreign presence, has already completed seven road projects in Afghanistan.
IDFC SSKI acted as exclusive financial advisor to BSCPL for the deal.
IDFC was also the company's advisor during its first round of private equity funding. The investment will fund BSCPL's projects in roads and real estate, and will also be used to repay a portion of the company's existing debt, an investment banker close to the deal said.
B Krishnaiah, chairman of BSCPL, said the company has drawn ambitious plans to grow at a rapid pace in the infrastructure segment. "We see a lot of synergy between the company and all the investors who have come on board. This will lead to greater thrust in achieving goals set out," he said.
BSCPL has already formed a consortium with multinational engineering giant Siemens to bid for all modernisation of airport projects in India. The company has also forayed into other infrastructure sectors like development of ports and power plants and urban infrastructure.
The company's current order book position is to the extent of Rs 2,224 crore.
"The technical competence and the ground level operational efficiency built up over the years will now be leveraged in different areas of infrastructure development that the country is throwing up. The presence of the diverse set of investors who are giants in their respective areas will provide a boost to the company's plans," said BSCPL MD B Seenaiah.
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