Baring Private Equity Asia is taking a 14 per cent stake in the India unit of Lafarge SA, the France-based cement-maker. This would be the largest PE investment in the sector in India. Lafarge said it had signed an agreement to raise $260 million or Rs 1,427 crore through the capital increase subscribed by Baring PE and representing a 14 per cent minority stake in its Indian subsidiary, Lafarge India.    

In 2010, PE major Kohlberg Kravis Roberts (KKR & Co) had bought a 21 per cent stake in an unlisted entity of Dalmia Cement (Bharat)-Avnija for Rs 750 crore. This transaction, subject to the approval of local regulatory authorities, will accelerate Lafarge’s growth plans in India in all its product lines — cement, aggregates and concrete, said a company statement.    

The debt-ridden parent company, Lafarge, has been struggling to reduce its debt of £12.2 billion. As the parent company is unable to fund the expansion of its India unit, the company has opted for equity dilution to raise funds.