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Blackstone to buy 12.5 percent stake in Indian construction firm for US$150 million

Blackstone to buy 12.5 percent stake in Indian construction firm for US$150 million

The Blackstone Group is investing US$150 million (euro110 million) to acquire a 12.5 percent stake in Nagarjuna Construction Company, one of India's leading construction firms, both companies have said.
This is the fourth investment in India this year by the New York-based private equity firm, which has been aggressively scouting for acquisitions in the country.
Earlier this month, Blackstone reached an agreement to pay up to US$165-million to acquire a majority stake in Gokaldas Exports Ltd., India's top garment exporter.
Blackstone's decision to invest in Nagarjuna Construction _ announced late Tuesday _ was driven by expectations that government and private spending in infrastructure projects in India will rise sharply to keep pace with demands of a booming economy.
"We believe that planned infrastructure expenditure, economic growth, and urbanization will drive long term growth in India's construction sector," Akhil Gupta, Blackstone's India head, said in a statement.
Infrastructure spending in India is projected to top US$470 billion over the next five years, according to the country's Planning Commission.
Nagarjuna Construction is India's third largest construction company and has won several large contracts in recent years. It mostly builds roads, buildings and water systems and is expanding into the power and oil sectors.
The money from Blackstone will help "expand our capital base, enabling us to bid for larger projects going forward and strengthening our strategic positioning in the market, " said A. Ranga Raju, managing director of Nagarjuna Construction.


Updated : 2021-03-05 14:52 GMT+08:00