US-based investment firm Xander Group will invest Rs.240 crore in construction and civil engineering major HCC Infrastructure. HCC has reportedly agreed to dilute 14.5% stake in HCC Concessions. At present HCC has invested Rs.650 crore and additional investments of Rs.350 crore will be required in FY12 and FY13.
The company has six NHAI ((National Highway Authority of India)) concessions worth Rs.5,500 crore or $1.2 billion, of which one is an annuity project and five are toll roads.
This deal is the second known investment of the Xander Group in the Indian roads and highways space. Last year, it had invested Rs.400 crore in Sadbhav Infrastructure Project (an infra player primarily involved in roads and highways development), along with Norwest Venture Partners.
The Xander Group Inc. invests in infrastructure, hospitality, retail and real estate sectors, and has committed over $1.8 billion of equity in India across five dedicated India funds since 2005.
There have been a slew of big private equity deals in the Indian roads and highways space as investors look to tap the upcoming infra opportunities. India may require $1.7 trillion in the decade starting from 2010, to meet the country’s overall infrastructure demand and keep pace with the economic growth and urbanisation, a report by Goldman Sachs has stated. Of this, power and roads alone may require upwards of $700 billion.
