Consolidated Construction Consortium plans to raise ₹50 crore through a preferential issue. The company will issue about 2.85 crore equity shares of ₹2 face value each on a preferential basis. The Board of Directors has approved issuance at ₹17.50 a share. The proposed issue, subject to shareholders’ approval, will bring on board marquee shareholders, including Systematic Conscom, a company engaged in the business of construction solutions.
The funds from this issue will further strengthen the company’s balance sheet profile and will also augment the financial flexibility to address medium-to-long term growth prospects, it said.
R Sarabeswar, Chairman, CCCL said the proposed investors have placed their confidence and trust in supporting CCCL turnaround from the difficulties it encountered due to contractual mismatches, at the time of global uncertainty and economic slowdown in India. The timely investment will be a point of inflexion in the ongoing business turnaround, he said.
Founded by two first-generation entrepreneurs, Sarabeswar and Sivaramakrishnan, both former L&T engineers, CCCL has executed over 900 projects comprising 294 Industrial Projects, 425 Commercial Projects, 7 Airports, 84 Residential Projects and rest in other sectors across 21 states. The aggregate built-up area of the projects is over 120 million sqft.