HCC arm to raise Rs 240 cr by stake dilution

Our Bureau Mumbai | Updated on July 28, 2011 Published on July 28, 2011

HCC Infrastructure will raise Rs 240 crore by diluting 14.5 per cent stake in its wholly owned subsidiary, HCC Concessions, to global investment firm The Xander Group.

HCC Infra is a wholly owned subsidiary of Hindustan Construction Company. The transaction values HCC Concessions, which designs, finances, builds and operates transport infrastructure, at Rs 1,650 crore.

Currently, HCC Concessions' Rs 5,500-crore portfolio includes six National Highways Authority of India concessions, including an annuity project and five toll roads.

Mr Ajit Gulabchand, Chairman and Managing Director, HCC, said, “The Indian Government has enhanced the pace of development of world class infrastructure for India through public private partnership and HCC has chosen Xander, an investment group in which we find a wealth of expertise and commitment to complement our business goals. The deal reinforces faith in our robust asset portfolio and the growth potential for our concessions business.”

Mr Arthur Segel, Chairman, The Xander Group, said, “As India continues to grow, it will need more world-class infrastructure, built by world-class companies. HCC is one such company and we believe its skills will help propel the country further into the 21st century.”

Published on July 28, 2011
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