The Consolidated Construction Consortium Ltd (CCCL), which is into engineering, procurement and construction (EPC) and project management operations, has received approval from shareholders to raise funds up to $100 million through various means. The resolution is to enable the company to raise funds if it receives orders on the segments it is currently foraying into, power EPC and road construction.
Last year, CCCL had set up a separate company, CCCL Power infrastructure Company, to carry out EPC projects in the power infrastructure segment. It is expecting orders for the new company to come in during the present fiscal, said R Sarabeswar, chairman and CEO of CCCL.
“With issues, including the lack of coal linkages, the power infrastructure sector did not see too many new orders during the period. We are expecting at least one order for the subsidiary this year,” he said. Besides, it also looking at some road sector projects this fiscal.
“We are also looking at some of the road sector projects this fiscal. We have started participating in some bids last fiscal and this year we expect some of the orders,” he added. However, he said the company has not set any target for the new segments.
The resolution passed at the company’s Annual General Meeting (AGM), of late, is an enabling resolution and the company does not have any plans at present to raise funds, he added. This year, the company is focusing on growth of its bottomline while the topline is expected to post a lower growth rate.
An explanatory note by the company requesting approval from the shareholders to raise funds stated: “The company shall require additional funds to foray into bigger infrastructure projects like power plants, desalination plants, bridges, roads etc.” The resolution would allow the board of directors to raise funds through equity capital, private placement, ADRs, GDRs, debentures and other securities.
CCCL’s prefabricated concrete structure factory, which it launched recently with an investment of Rs 35-40 crore, is also looking at more business this year. With the facility in position, it has submitted the end product for the approval of the city development authority.
The company is planning to offer the prefabricated conc-rete structures, which is expected to reduce the cost of construction by one third of the cost incurred otherwise, to residential projects, he said.
In May, 2012, it has raised around Rs 20 crore from Tata Capital Financial Services Ltd through non-convertible redeemable debentures to meet its medium term working capital requirements.