SAAG RR Infra to raise Rs 30 cr

SAAG RR Infra, a subsidiary of SAAG Consolidated (B) BHD Malaysia, expects to raise long term funds of about Rs 30 crore to fund its expansion plans in the infrastructure and oil and gas sector.

A informed that Rs 30 crore would be raised either through the issue of shares to public or right issues, or american depositary receipts or global depositary receipts in the international or domestic markets.

According to L V Shyam Sundar, company secretary, SAAG RR Infra, the board of directors of the comapny is expected meet sometime between January 23 to 27 to finalise the amount and the mode of raising the capital. The maximum amount of capital that Saag RR Infra can raise is Rs 30 crore.

"Major part of the capital raised will be used for infrastructure project. SAAG RR will also earmark a certain chunk of the capital to form a division that will identify niche areas in the oil and gas sector," said Sundar.

These niche segments would be consultancy and pipeline laying. SAAG Consolidated (B) BHD Malaysia had tied up with companies abroad that have the experience to take part in oil and gas projects.

The experience brought in by partners is needed by SAAG Infra to meet the qualifications to make bids in India.

The company expects to close the current financial year with a turnover of Rs 25 crore to Rs 30 crore. SAAG Infra clocked a total turnover of Rs 16 crore last year.