New Delhi -°C
Today in New Delhi, India

Oct 16, 2019-Wednesday



Select city

Metro cities - Delhi, Mumbai, Chennai, Kolkata

Other cities - Noida, Gurgaon, Bengaluru, Hyderabad, Bhopal , Chandigarh , Dehradun, Indore, Jaipur, Lucknow, Patna, Ranchi

Wednesday, Oct 16, 2019

Citicorp Venture takes 25 pc in Subhash Projects

The placement has pegged the company's market capitalization at Rs 1,013 crore, reports Arun Kumar.

business Updated: Jul 02, 2007 22:11 IST
Arun Kumar
Arun Kumar
Hindustan Times

Citicorp Venture Capital (CVC) has acquired a 24.6 per cent stake in engineering and construction firm Subhash Projects & Marketing Ltd for Rs 250 crore.

The company has decided to issue 81,63,816 equity shares of Rs 2 each at Rs 245 and 20,40,816 warrants convertible in 18 months at an exercise price of Rs 245 aggregating to Rs 250 crore.

After the private placement, the promoters' stake in the company will decline to 56.21 per cent from the current level of 74.68 per cent. The placement has pegged the company's market capitalization at Rs 1,013 crore. The funds raised will enable investments in group projects and working capital expansion. Currently, the company share price is trading at Rs 247 per share.

SPML registered a jump of 107 per cent in net profit to Rs. 43.6 crore in 2006-07 from Rs 21.04 crore in 2005-06. Profit Before Tax (PBT) rose by 152 per cent to Rs 50.36 crore from Rs 21.04 crore. Riding on the infrastructure boom, the company’s revenues registered a growth 120 per cent to Rs 808 crore in 2006-07 from Rs 367 crore in the previous year.

Commenting on the results Subhash Sethi, Vice Chairman, SPML, said, “The company is in a high growth phase with the opening up of opportunities in infrastructure. Our growth strategy is to focus on building on our core competencies in water and power and expanding our portfolio of services in environmental engineering. SPML aims to achieve a turnover of Rs. 1,200 crore in FY 2007-08 and is constantly capitalizing on untapped areas and opportunities to drive the next level of growth.”

First Published: Jul 02, 2007 22:08 IST

top news