Date:23/01/2007 URL: http://www.thehindubusinessline.com/2007/01/23/stories/2007012302801700.htm

Back Funds pick 13.5% stake in Ramky Infrastructure

Our Bureau

Sabre-Abraaj, IL&FS invest Rs 125 crore

Company might go for a public issue in one year.

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Hyderabad Jan. 22 Sabre-Abraaj Private Equity Fund I and IL&FS have picked 13.5 per cent of equity in the Hyderabad-based Ramky Infrastructure Ltd for a total consideration of Rs 125 crore.

Sabre-Abraaj Private Equity, a 50:50 joint venture between Sabre Capital World Wide Inc, and the UAE-based Abraaj Capital, has picked 8.1 per cent for Rs 75 crore.

IL&FS took the remaining 5.4 per cent for Rs 50 crore through a fund managed by it. Ramky issued shares at Rs 1,146 a share to these funds.

The promoters held the remaining stake.

Announcing the investments by the two funds at a press conference here on Monday, Mr A. Ayodhya Rami Reddy, Chairman of Ramky group, said the company might go for a public issue in one year.

"From a turnover of Rs 64 lakh 10 years ago, we are now confident of crossing the Rs 750-crore mark this financial year for the infrastructure company. As we prepare for the next league for operations, we need financial resources to support the future plans," he said.

The turnover of the Ramky group was pegged at Rs 1,000 crore as against last year's Rs 600 crore.

Last year, the infrastructure company registered a turnover of Rs 370 crore.

Mr M. Goutham Reddy, Director of the group, said the group was targeting to become a $1-billion company in the next 4-5 years.

"Our present order book is worth Rs 2,300 crore," he said.