Punj Lloyd Divests 11Pc Stake

Mumbai: A clutch of private equity funds including Warburg Pincus, Blackstone, Avenue Capital and hedge funds DKR Oasis and Kingdom Capital have purchased a total of 11 per cent stake in Punj Lloyd for Rs 814 crore. Warburg Pincus has purchased 5.5 per cent stake while, Avenue Capital has taken over 2.5-3 per cent in Punj Lloyd, which is an EPC contractor concentrated on the oil and gas sector with diversification to infrastructure. Private equity major Blackstone purchased somewhere between 0.5 per cent and 1 per cent in Punj Lloyd, which issued the shares to these global investors via a qualified institutional placement (QIP) issue priced at Rs 275 a share, almost on par with the current market price.

The deal propels the company''s valuation to nearly Rs 8,000 crore. Moore Capital bought 1-1.5 per cent stake in the Delhi-headquartered construction major. The company issued 29.6 million shares through the QIP issue, managed by Citigroup Global Markets India and Kotak Mahindra Capital Company. The Pipavav shipyard complex, situated on the west coast of India along the Dubai-Singapore sea route, will give the company access to fabrication facilities for off-shore platforms, single buoy moorings and rigs.Overseas exposure has also helped the company move up the learning curve and become competitive globally. India''s infrastructure needs about $ 282-370 billion overhaul to maintain the GDP growth rate at 8.5 per cent, encouraging companies such as Punj Lloyd to raise funds to meet their expansion plans.