Politics · India Bureau
Megha Engineering MD seeks $700 million for stake acquisition
PV Krishna Reddy, managing director of Megha Engineering and Construction, is pursuing approximately $700 million in private credit financing to acquire his uncle's controlling stake in the infrastructure company.
LSN India ·
The billionaire entrepreneur is in discussions with global private credit investors to secure funds for the transaction, which would involve purchasing a 43% shareholding in the Hyderabad-based engineering firm. The acquisition would consolidate Krishna Reddy's control over the company, which has emerged as a significant player in India's infrastructure and construction sector.
Megha Engineering and Construction has built a substantial portfolio spanning hydroelectric projects, transmission lines, and renewable energy infrastructure across India. The company's operations span multiple states, with notable involvement in major national infrastructure development initiatives.
Private credit markets have become an increasingly popular avenue for large acquisitions and corporate restructurings in India, offering borrowers alternative financing options beyond traditional banking channels. The move reflects broader trends among Indian business groups seeking to consolidate ownership stakes through structured debt instruments.
The proposed transaction underscores the competitive landscape in India's construction and infrastructure sectors, where family-controlled enterprises regularly undertake ownership restructuring to strengthen management control and strategic positioning. Krishna Reddy's efforts to secure the majority stake would align him more firmly with the company's operational and strategic direction.