Nagarjuna Construction to issue shares, warrants to Blackstone Group

Nagarjuna Construction Company Ltd has announced that the Board of Directors of the Company at its meeting held on August 28, 2007, has accorded its in-principle approval for issue of 20,246,900 Equity Shares of Rs 2/- each at a premium of Rs 200.50 (equivalent to around US$ 100 million) and 9,111,111 Warrants of Rs 225/- per Warrant each Warrant convertible into one Equity Share of Rs 2/- each at a premium of Rs 223/- (equivalent to around US $ 50 million) together aggregating to around Rs 615 Crores (US $ 150 Million) to M/s. Blackstone GPV Capital Partners Mauritius V-A Ltd, M/s. Blackstone GPV Capital Partners (Mauritius) V-H Ltd and M/s. Blackstone FP Capital Partners (Mauritius) V FII Ltd, belonging to the Blackstone Group of USA. The amounts being raised by the Company out of the aforesaid Preferential Offer are proposed to be used for the purpose of investing in the BOT Projects and other Infrastructure Projects being developed by the Company as well as through its subsidiaries and associates, for meeting the Working Capital and other long term funding needs of the Company.

An Extraordinary General Meeting of the members of the Company is being convened on September 24, 2007 for obtaining the approval of the members of the Company in respect of aforesaid issue of shares and warrants on preferential basis.

The stock closed the day at Rs.197.55, up by Rs.2.80 or 1.44%. The stock hit an intraday high of Rs.200.70 and low of Rs.193. The total traded quantity was 119221 compared to 2 week average of 188246.

Source : Equity Bulls

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