Nagarjuna Construction to raise Rs 550 crore via QIP

Nagarjuna Construction to raise Rs 550 crore via QIPHyderabad-based infrastructure firm, Nagarjuna Construction Company Ltd (NCC), plans to raise funds worth Rs 550 crore through qualified institutional placements (QIP), for which the company has already received necessary approval from its Board. However, it will get approval from its shareholders on July 30.

The firm will use these funds to expand its presence in the infrastructure segment, especially in the road network projects. NCC is specialized in the roads' sector. However, it has been reporting decline in its margin for the financial year 2009. It is also looking for opportunities in water and power sector, the major focus area of the UPA-led central government.

The Executive Vice-president of firm, YD Murthy, said: "We want to use the proceedings to clear nearly Rs 250 crore debt. Remaining portion will be invested in projects taken up on built-own-transfer mode."

NCC has not yet announced any date for QIP, but fund will be raised in one tranche. The shares of the company surged 5.1 per cent and closed at Rs 143 on the National Stock Exchange.