The Nagarjuna Construction Company Ltd (NCC) plans to
raise funds to the tune of $120mn through a global offering.
The funding will meet its investment requirements in implementing
BOT / BOOT projects and also to meet working capital and
long-term funds requirements.
company proposes to raise the funds either through issue
of global depository receipts (GDRs) or foreign currency
convertible bonds (FCCBs) or a combination of both. Having
recently obtained the board approvals for the proposal,
the company now plans to seek the consent of its shareholders
at the ensuing extraordinary general meeting.
to a senior NCC official, with the Government laying more
thrust on infrastructure related projects, the construction
industry has been performing well. The opportunities are
steadily growing for those construction companies that
are specialising highways, roads, water pipeline projects,
hydroelectric projects and urban infrastructure projects.
view of the proposed issue of GDRs / FCCBs, the company
also proposes to alter its authorised share capital. The
present authorised capital stands at Rs25 crore dividend
into 10 crore equity shares of Rs2 each, amounting to
Rs20 crore and 50 lakh redeemable preference shares of
Rs10 each amounting to Rs5 crore. The company
proposes to replace the preference capital with equity
capital. Following this, the authorised capital will consist
of 12.5 crore equity shares of Rs2 each aggregating to