Singapore's GIC buys stake in Indian construction firm

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Shapoorji Pallonji has sold 15 per cent of its shares to a group of investors including Singapore's Government Investment Corporation (GIC).

The India-based construction giant offered the stake via special purpose vehicle (SPVs), which has been bought for $290 million (A$337 million).

According to the Economic Times of India, the fundraising exercise is the largest ever in the real estate sector and will be used to provide finances for six construction projects.

The newspaper is told that the original intention was for a separate SPV to be set up for each of the six, but it was decided to go with one vehicle to hold all of them.

A source is quoted as saying: "Some of the projects are currently under implementation; others are about to take off. It was a complex deal because of multiple investors and its sheer size."

Shapoorji Pallonji claims to be the oldest Indian construction company with more than 140 years of project experience.