Company in talks with three private equity players.
Totem Infrastructure is in talks with three private equity funds to raise about Rs 150 crore in a second round of funding. The company is also in the process of forming four specialty business outfits to focus on roads, railways, industrial buildings and power and irrigation sectors.
Addressing the media here on Thursday, Abhijeet Roy, Totem director and chief operating officer, said the company had decided not to take up build, operate and transfer projects for now in view of the current volatile financial markets. Currently, it is executing cash contracts for highway, irrigation and power projects.
Last year, the Hyderabad-based infrastructure company raised Rs 30 crore from Singapore-based Aquarius Capital by divesting 20 per cent stake. Roy said Totem would not go for divestment if the valuation is the same or less than last year’s Rs 150 crore.
The company, which registered a turnover of Rs 168 crore last year, has set a target of Rs 300 crore this year and Rs 1,000 crore by 2011. It also plans to add another 500 people to its strength of 750 in a year.
This apart, it has firmed up plans to execute projects in West Asia as well as in Africa. Back home, Roy said they would independently bid for highways and irrigation projects in the state while the national projects would be executed through joint ventures.
At present, the company's order book stands at Rs 1,600 crore with road projects comprising 70 per cent, irrigation 20 per cent and the remaining from power and railway sectors. These include 1,260-km road projects and office space for a greenfield plant of National Thermal Power Corporation.