Subhash Projects vice-chairman Subhash Sethi in Calcutta on Monday. Picture by Kishor Roy Chowdhury

Calcutta, July 2: Subhash Projects and Marketing Ltd today said Citicorp Venture Capital would invest Rs 250 crore for a 25 per cent stake in the company.

The private equity fund will invest Rs 200 crore in equities and Rs 50 crore in warrants to be exercised over the next 18 months, the company said in a statement. The price of a share is Rs 245. After the issue to Citicorp Venture, the promoters’ stake in the company will be reduced to 56 per cent from 74 per cent.

Subhash Sethi, vice-chairman of Subhash Projects, said the funds would be used in group projects and to meet working capital requirements.

Subhash Projects has orders of Rs 3,300 crore, of which water supply projects comprise Rs 1,500 crore, power Rs 1,300 crore and infrastructure Rs 500 crore.

The company posted a 107 per cent rise in net profit at Rs 43.6 crore for the year ended March 2007.

Turnover during the period under review was Rs 808 crore, up by 121 per cent over the same period last year.

Sethi said the company expected to cross the Rs 1,200-crore turnover mark in this fiscal. The company’s waste management project in Delhi will ensure a regular flow of income for eight years.

Subhash Projects has also completed hydel projects of 20mw and 6mw in Karnataka and Arunachal Pradesh, respectively.

The company recently entered into agreements with the Gujarat government for various city development plans in areas such as water supply and sewerage, electricity utility, roads and township development.