CVCIML, the private- equity arm of Citigroup, is likely to pick up 9% equity in the infrastructure and real- estate major for Rs 150 crore.
HYDERABAD: Citigroup Venture Capital International Mauritius Limited (CVCIML), the private- equity arm of Citigroup, is likely to pick up 9% equity in infrastructure and real- estate major Indu Projects Ltd (IPL) for Rs 150 crore.
Subsequent to the private equity placement, the promoters hold roughly 75% stake in the company which has been valued at Rs 1,500 crore, company officials said. In an earlier round of equity placement, close to 9% stake was offloaded by company’s promoters to NRIs and high network individuals that included Matrix Labs promoter N Prasad among others, for a sum of Rs 90 crore.
Indu Projects has embarked on a restructuring exercise wherein it will hive off the realty and infrastructure divisions in a bid to unlock value in the company, I Shaym Prasad Reddy, chairman Indu Projects, had told DNA Money recently.
The restructuring would be completed by the end of January in a bid to bring in private equity into the realty business and perhaps to be followed by an IPO at a later date by the infrastructure entity. The company could look at raising approximately Rs 1,000 crore through the IPO as and when it decides to go ahead with it, he added.
The group currently has five strategic business units comprising realty, retail infrastructure, special projects and BOTs, construction and core infrastructure.
Reddy said Indu Projects will close the current financial year with a turnover of over Rs 550 crore, up from Rs 312 crore it posted in 2005-06.
“We are looking at executing projects of over three crore sq ft over the next five years with an estimated investment of between Rs 12,000 crore and Rs 15,000 crore,” he added. Close to Rs 4,000 crore of this would comprise infrastructure projects alone, he said.
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