CCCL to raise ₹50 crore via preferential equity issue, aims business turnaround
Consolidated Construction Consortium Ltd. (CCCL), a construction services company in India, has announced its plan to raise ₹50 crore through a preferential equity issuance. The company’s Board has approved the issuance of up to 2,85,71,436 equity shares at a price of ₹17.50 per share.
The preferential issue, undertaken in accordance with Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, is subject to shareholder and regulatory approvals.
As part of this fund-raising effort, CCCL plans to attract reputed investors, including Systematic Conscom Ltd., a company specializing in construction solutions.
The capital infusion is expected to strengthen CCCL’s financial position and enhance its ability to pursue medium- to long-term growth opportunities.
Commenting on the investment, which is subject to necessary approvals, CCCL Chairman R. Sarabeswar said: “We are humbled by the trust placed in us by our investors during these challenging economic times. This investment marks a turning point in CCCL’s business turnaround as we work towards re-establishing ourselves as a leader in handling complex construction projects.”
For the nine months of this fiscal year, the company posted a profit after tax of ₹40 crore, as against a net loss of ₹671 crore in the year-ago period. Revenue stood at ₹134 crore as against ₹98 crore.
Last year, the company entered a one-time settlement plan with the lenders pursuant to the exit from the IBC proceedings. “With all dues settled, it is now a debt-free company,” said Sarabeswar.
