Indivision buys 26% in BE Billimoria for Rs 75 cr
Mumbai-based contract construction company BE Billimoria & Co has raised private equity from Indivision, a Mauritius-based fund promoted by Future Capital, by selling a 26% stake. The deal is valued at Rs 75 crore, according to sources.
BE Billimoria recently decided to enter the property development segment as it poses growth opportunities and is planning an IPO in a year.
“Some of the issues that we had to address were the lack of skilled people from management levels to workers and improving our systems of control. We have partnered with Indivision apart from providing funds. They have advisors to help with our business plans. Also, as they are partners with the Future Group, which has ongoing construction projects across various sectors, we hope to leverage this tie-up and secure some of these projects,” said BE Billimoria MD Kaiyoze Billimoria.
At present, the promoters, Kiayoze Billimoria and Digant Kapadia each hold 16.5% stake in the company while the rest is held by Merrill Lynch Capital Markets (4%), Indivision (26%) and other equity investors.
“Our estimated turnover for this year is Rs 200 crore which we are looking at trebling in the next five years through a pan-India presence. We are also considering a possible IPO in a year,” Mr Billimoria added.
“Historically, the company has stressed more on construction and has now started its own development projects. We have seen that the company has grown aggressively where it has a footprint.
We are excited about the sector and believe we can bring value to the company,” Future Capital Holding MD & CEO Sameer Sain said. This is the $425-million fund’s first investment in the real estate sector and Future Capital has announced plans to enter the hospitality sector.
BE Billimoria has worked on residential and commercial projects with different partners. Some of the major projects that the company has completed are IDBI Towers, Imax Theatre, Hotel Leela, Hotel Hyatt Regency and RBI among others, in the commercial space and Cadbury House, Hinduja Plaza and Palm Beach are some of the company’s projects in the residential space.
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