C&C Constructions to raise Rs 400-500 cr

Leading infrastructure company C&C Constructions is looking to raise about Rs 400-500 crore through sale of 30% 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% stake in C&C Projects," company Chairman Gurjeet Singh Johar said.

He added that the company was in talks with various private equity players for the stake sale.

C&C Projects, the 100% 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 Rs 5,400 crore.

This includes orders for laying power transmission networks in various parts of the country, construction of a Inter-state Bus Terminal at Mohali and works of about Rs 780 crore of the rail freight corridor.

"Despite slowdown in the economy, we are aiming to clock a growth of about 40% in this fiscal and about 20-25% in next 2-3 years due to our healthy order book position," Johar said.

In 2010-11, the company had reported a turnover of Rs 1,280 crore, while for the quarter ended September 30, 2011, its net sales stood at Rs 254 crore.

Shares of the company closed today at Rs 86.50 apiece on the BSE, up 1.11% from the previous close.