Hindustan Construction plans fund raising via QIP

Hindustan Construction plans fund raising via QIP
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First Published: Tue, May 26 2009. 11 05 AM IST
Updated: Tue, May 26 2009. 11 05 AM IST
Mumbai: Hindustan Construction Co Ltd plans to raise up to Rs1,500 crore through a qualified institutional placement (QIP), a top official told a television channel on Tuesday.
The funds would be used to capture more infrastructure projects and deleverage the balance sheet, Praveen Sood, group chief financial officer told CNBC-TV18.
“We are a growing company and money requirement is going to be there, and we feel with a stable government the fund requirement will be enormous,” he said.
However, Sood did not specify how much money the company would raise initially or how much debt would be retired.
“We may not go full throttle and raise the entire money,” he said. “It all depends how the market pans out in the next few days and of course looking at the promoter dilution which is a major cause of concern for us also.”
Indian companies are looking at equity sales as a source of funding after a strong stock market rally in the past few weeks. India’s benchmark index has risen almost three-fourths from its March lows.
At 10.41 am, shares in Hindustan Construction were trading up 4.33% at 110.80 in the Mumbai market which was trading slightly up at 0.22% at 13,943.69 points.
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First Published: Tue, May 26 2009. 11 05 AM IST
More Topics: Hindustan Construction | Funds | QIP | Finance | Money |