Private equity firms Blackstone Group and Kohlberg Kravis Roberts & Co (KKR) are discussing a large stake buy in the cement unit of the Shiram Group, the Times of India reports.
Shriram EPC, which took controlling stake in Andhra Pradesh-based Sree Jayajothi Cements, plans to raise more than INR400 crore to boost operations.
KKR already holds a stake in another Indian producer, Dalmia Cements. Another US private equity Mount Kellett also met with Shriram on the potential investment opportunity even though it may not take the interest forward. Investment bank MAPE Advisory is advising Shriram on raising the funds.
"We are looking out for private equity investors for Sree Jayajothi Cements. Nothing has been finalised and we do not wish to comment anything beyond on this topic now," T Shivraman, MD & CEO of Shriram EPC said when contacted by the newspaper.
Shriram EPC has a 70 per cent stake in Jayajothi Cements after it converted long pending dues into equity earlier this year. Original promoter Jayavilas Group holds the remaining shares.
Jayavilas founded Jayajothi Cements setting up a 3.2Mta plant at Kurnool-Kadapa district of Andhra Pradesh in 2009. The debt-laden company struggled to keep operations going until Shriram picked controlling interest.
