BANGALORE, Aug 28: New York-based private equity giant Blackstone Group made its third investment in an Indian company in two months on Tuesday when it bought a stake worth $150 million in a construction firm.

Blackstone will have a presence on the board of Nagarjuna Construction after the purchase, which was approved by directors of the Indian builder, the two companies said.

The US investor is among global funds that have spent billions of dollars in recent years to acquire stakes in Indian companies benefiting from an economy growing at nine per cent a year, the fastest after China.

“We believe that planned infrastructure expenditure, economic growth, and urbanisation will drive long-term growth in India’s construction sector,” Akhil Gupta, head of Blackstone India, said in a statement.

Construction firms are growing rapidly in an economy that needs to invest $475 billion by 2012 to refurbish and reinforce its infrastructure, including ports, roads and airports, according to official estimates.

“This investment will not only allow us to make additional investments in infrastructure projects, but will also expand our capital base, enabling us to bid for larger projects,” Nagarjuna managing director A. Ranga Raju said.

The builder will offer new shares in return for the investment by Blackstone, which earlier this month bought a majority stake in India’s largest garment manufacturer and exporter, Gokaldas Exports, for $165 million.

In June, Blackstone joined a management buyout of Intelenet Global Services, an Indian back-office company that services 60 local and international clients.

Private equity firms typically invest for a set period of time, helping nurture companies to a level of growth where they are ensured of a profit before cashing out. —AFP