Private Equity News & Analysis

Blackstone invests $150m in Indian construction(3)

The US buyout firm has made a growth capital investment in Nagarjuna Construction Company, an Indian business that is set to benefit from the government’s increasing expenditure on infrastructure.

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US buyout firm The Blackstone Group has invested $150 million for a 12.5 percent stake in the Nagarjuna Construction Company, a listed building business in India.  

Nagarjuna is the third largest construction services company in India. The company operates across the construction industry including road, water and electricity projects, and has recently expanded into areas such as power, oil and gas.

Blackstone has invested $100 million in shares and $50 million through warrants that can be realised within 18 months. This corresponds to a stake of about 12.5 percent. The buyout giant will take a seat on the board of the company under the terms of the deal.

Blackstone’s spokesman said: “This is an infrastructure play which is set to benefit from the Indian government’s five year plans, especially as the Blackstone brand will help the company secure tougher contracts.” The company had high revenue visibility and its books were full for the next two years, he said.

The Nagarjuna Construction Company is listed in India on the Bombay Stock Exchange.