NCC Infrastructure Holdings, a wholly owned subsidiary of Nagarjuna Construction Company, may dilute equity to raise funds for the 1,320-mw Krishnapatnam power project. The equity dilution is expected to happen in the next six to nine months for this project. Nagarjuna Construction Company, now re-christened NCC, said that it would achieve the financial closure in the next three months for the R7,000-crore power project.
NCC, having an order book of about R17,000 crore, is looking to consolidate further and achieve a growth of about 15-20% year-on-year. According to A Ranga Raju, MD, in the next 39-42 months of its financial closure, the phase one and phase two of 660 mw of the project would commence. The company hopes to maintain a growth of 15-20% in topline and 4% in bottomline.
According to Y Dakshina Murthy, executive VP (finance) of NCC, ?The Krishnapatnam power project requires an equity of Rs 1,800 crore. We have 55% share and require R950 crore. For financial closure, we require R250 crore. While we have put in R150 crore, another R100 crore will be invested by the end of this fiscal. For the remaining requirement, we are looking at possible equity dilution,? he said. REC and PFC are the lead bankers and the company is in talks with State Bank of India and ICICI Bank for the rest.