HCC Concessions completes deal with Xander Group

HCC Concessions, a wholly-owned subsidiary of HCC Infrastructure, on Thursday said that it has concluded the process of 14.5 per cent equity dilution to global investment firm Xander Group to raise Rs. 240 crore to fund its existing projects.

"The company has received Rs. 240 crore for 14.5 per cent equity dilution at a company valuation of Rs. 1,650 crore," HCC Chairman and Managing Director Ajit Gulabchand told reporters here.

"With the Government's added imputes to the public private partnership (PPP) model, we are glad to partner with Xander to transform infrastructure more rapidly in India," he said.

HCC Concessions is aiming a turnover of over Rs. 500 crore by FY14, with a free cash flow CAGR (compound annual growth rate) of over 75 per cent in the next five years.

At present company's portfolio is worth Rs. 5,500 crore (USD 1.2 billion), which includes six NHAI concessions. This includes one annuity project and five toll roads: Nirmal (annuity) in Andhra Pradesh, the award-winning Delhi Faridabad Elevated Expressway, Dhule-Maharashtra/MP Border (Dhule) on NH3 and three contiguous sections in West Bengal on NH34.

"We are mainly focusing on quality assets and in a few year we expect to increase our portfolio from Rs. 5,500 to Rs. 15,000 crore," Gulabchand said.

Asked about taking up projects won by companies who are unable to execute them due to various reasons, he said, "We won't acquire them unless we are able to turn them into quality assets."