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Beacon India acquires 1.3% stake in PE-backed construction firm

  • Alvina Yuen
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Beacon India Private Equity Fund, a $200 Million Indian growth capital vehicle, has acquired a 1.3% stake in NCC, a listed construction and infrastructure enterprise backed by The Blackstone Group and ChrysCapital Advisors. The transaction is worth INR216.4 million ($4.5 million).

Beacon India purchased the stake in NCC at INR62.69 per share, VCCircle reported. NCC's current market cap is around INR15.8 billion and its share price has nearly doubled since the start of the year.

NCC is one of India's largest Indian construction companies. Formerly known as Nagarjuna Construction Company, it is backed by Norway's Government Pension Fund Global and well known Indian investor Rakesh Jhunjhunwala, as well as Blackstone and ChrysCapital.

Blackstone's interest in the company stands at 9.9%. In August 2008, the private equity firm said it would invest $150 million into NCC in two tranches, paying an INR0.2 premium per equity share. The investment came at the peak of the market. ChrysCapital followed last year with the purchase of a 7.2% stake.

This is the second PIPE investment by Beacon India within a month. In early January, the private equity firm has acquired close to 1% of listed hospitality firm Sterling Holiday Resorts, which is backed by Bay Capital Investments.

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