Baba Kalyani led BF Utilities set to raise Rs. 500 crore.

Baba Kalyani led BF Utilities, the publicly held company which is executing the Rs. 6,000 crore Bangalore - Mysore expressway project, is set to raise Rs. 500 crore through the equity route. The company is looking to raise this sum to fund the completion of the first phase of the expressway, which has been in the works for the past nearly two decades due to scores of land acquisition problems. In addition to completion of the 12 kilometres of the expressway under the first phase, BF Utilities is also expected to deploy the fresh resources to start the development of the township along the expressway, as and when the Courts clear the compensation play to land holders.

Senior investment banking sources said that BF Utilities is likely to tap the QIP route for this fund raise and most probably this transaction will proceed parallely with a planned move to merge a SPV (special purpose vehicle) executing the project under BF Utilities.

BF Utilities, in which the promoters led by Baba Kalyani hold little over 65%, has a step down subsidiary Nandi Infrastructure Corridor Enterprise (NICE) and which subsequently has floated a SPV - Nandi Economic Corridor Enterprise (NECE) to execute the first phase of the project.


BS