Construction materials provider Infra.Market has sold 10% of its stake in its subsidiary RDC Concrete for $20 million, to public market investors led by Ashish Rameshchandra Kacholia.
Ace investor Kacholia is known to pick up stakes across companies.
In a statement, Infra.Market said the divestment is part of plans to take RDC Concrete public in the near future.
The current fundraise values RDC Concrete at $225 million, Infra.Market said. It had acquired RDC Concrete for $90 million in September 2021.
The deal is expected to add to the cash in the books of Infra.Market.
“We look forward to witnessing RDC’s continued evolution and contributing to its journey in the sector as we welcome the new investors in the company,” said Souvik Sengupta, cofounder, Infra.Market in a statement.
Since its acquisition by Infra.Market, RDC has added another 51 ready-mix concrete (RMC) plants, growing the total number to 100. The company now expects to have around 180 RMC plants by the end of fiscal year FY25.
“We look forward to being good partners in the further growth of the company (RDC Concrete) and are excited for the journey ahead,” said Kacholia.
RDC Concrete is looking to clock revenues of Rs 2,000 crore by the end of this FY24, it said.
In FY23, Infra.Market saw its revenue grow by over 75% to Rs 11,000 crore, with profit touching Rs 300 crore for the fiscal.
The company is also in talks with investors including Varde Partners to raise $150 million in funding through the issuance of convertible instruments, Sengupta said earlier.
The funding will be used to finance its purchase of a majority stake in engineering solutions provider Strata Geosystems India. Infra.Market had entered into a definitive agreement to acquire Strata from US-based Glen Raven Technical Fabrics LLC, for Rs 910 crore, in June this year.
Source: Economic Times