The Hindu : Business : Bessemer invests in Shriram EPC

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Friday, Mar 31, 2006

Business

Business

Bessemer invests in Shriram EPC

Special Correspondent

CHENNAI: The U.S.-based private equity fund, Bessemer Venture Partners Trust, has invested Rs. 100 crore in the Chennai-based Shriram EPC Ltd. (SEPC).

The investment comes in the form of subscription to fresh issue of convertible preference shares at a prefixed premium.

The unlisted SEPC has a paid-up capital of Rs. 25 crore. It has issued preference shares worth Rs. 12 crore to the U.S. fund.

According to T. Shivaraman, CEO, these preference shares could be converted into equity shares within 36 months or when SEPC goes public, whichever happens earlier.

"We are planning to go public within the next 18 months,'' he said. Post-conversion, Bessemer will hold 33 per cent stake in SEPC. SEPC would use the funds thus raised to part-finance capacity expansion in windmills and acquisition of new technologies.

SEPC is into construction of steel plants, biomass and wind-based power projects and the like. The CEO said the company would end the current year with a turnover of Rs. 150 crore.

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