PE firms to pick 40% stake in Valecha subsidiary

PE firms to pick 40% stake in Valecha subsidiary


Mumbai: A couple of private equity (PE) firms have evinced interest in picking up around 40% stake in Valecha Infrastructure, a wholly-owned subsidiary of mid-sized road construction player Valecha Engineering.

“We have plans to dilute 40% stake in Valecha Infrastructure. Two PE players - one from India and another from overseas - have evinced interest to pick up stake in the company. We hope to close the deal shortly," Valecha Engineering Managing Director Jagdish Valecha told PTI today.

Valecha Infrastructure plans to raise 100 crore by diluting the stake and grab orders worth 1,000 crore in one year in three verticals - transport, power and real estate.

“The signing of the deal will be made in such a binding that the parent company can buy out diluted stakes in the company after three years," Valecha said.

Valecha Infrastructure has already formed three Special Purpose Vehicles (SPVs) to take up the job in the respective verticals. This would help Valecha Engineering to widen the scope and area of its existing work portfolio, which is mainly concentrated in road constrcution area.