Megha Engg’s PVK Reddy taps $700 mn credit

By Sohail Khan 31 August 2026, 8:37 am

Benchmarks
Nifty24,175.6584.81

Precious Metal
Gold (MCX) (Rs/10g.)156,400.00-2596.0

Enter search text:

Business News›Industry›Ind'l Goods/Svs›Construction›Construction giant Megha Engineering's PV Krishna Reddy taps $700 million private credit to buy out uncle's share

Read Today's Paper

Construction giant Megha Engineering's PV Krishna Reddy taps $700 million private credit to buy out uncle's share
Synopsis

With lenders such as Davidson Kempner involved in structuring the deal, it marks a significant milestone in the expanding influence of private credit within Indian corporate transactions.

A key shareholder of India’s Megha Engineering & Infrastructures Ltd. is seeking to raise about $700 million from global private credit investors to buy out his uncle’s stake in the company, according to people familiar with the matter, in what would be one of the nation’s biggest deals this year.

A consortium of lenders including Davidson Kempner Capital Management, Elham Credit Partners and Varde Partners has begun preliminary work on the structure of the financing, the people said, asking not to be identified because the information is private. Terms haven’t been finalized and discussions could still change, they said.

Billionaire PV Krishna Reddy, the managing director of Megha Engineering who now owns 57% of the company is raising the money to help finance his acquisition of the remaining 43% stake held by his uncle Pamireddy Pitchi Reddy, the executive chairman, according to one of the people.

Representatives for Megha Engineering, Elham Credit Partners and Varde Partners didn’t respond to Bloomberg’s requests for comment. Davidson Kempner declined to comment.

If completed, it would be among India’s largest private credit deals this year, and just under half of the equivalent $1.6 billion raised by conglomerate Shapoorji Pallonji Group last month. The planned deal highlights the growing role of private credit in financing large shareholder and corporate transactions in India, where traditional lenders could be constrained in offering flexibility on funding certain types of acquisitions.

Also read | Iran crisis puts Xi-Putin’s anti-US bloc to the test

Investments in the country’s private credit market reached $3.5 billion in the first half of 2026, less than half of the $9 billion in deals a year earlier which included the record $3.1 billion raised by Shapoorji Pallonji Group for refinancing, a report from consulting firm EY shows.

India’s private credit sector has doubled in size over the past five years to about $25 billion in assets under management at the end of 2025, according to Moody’s Ratings. Although that pales in comparison with the US market, which manages more than $1 trillion in assets.

Founded in 1989 as a small fabrication unit in Hyderabad, Megha Engineering has projects in more than 20 countries spanning tunnels, ports, highways, water systems and power assets, according to its website.

Also read | Nepal disaster puts focus on what China did not share

The company has been seeking to sell some of its road assets. KKR & Co.-backed Vertis Infrastructure Trust has emerged as the frontrunner to acquire eight roads from Megha, Bloomberg reported in July.

Megha was the top donor to Bharatiya Janata Party over the past five years, according to a 2024 election commission data, purchasing about Rs 670 crore ($70 million) of electoral bonds.

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our WhatsApp channel)

(Catch all the Business News, Breaking News and Latest News Updates on The .)

…moreless

(You can now subscribe to our WhatsApp channel)

Read More News on
Megha EngineeringPV Krishna Reddypamireddy pitchi reddymegha engineering ownersmegha engineering and infrastructures ltdDavidson Kempner

(Catch all the Business News, Breaking News and Latest News Updates on The .)

…moreless

Enter search text:

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with in-depth insights that matter

Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

The problem with lab grown diamonds
Why a falling rupee is a better option for the economy

A list of top 20 momentum stocks that have delivered massive returns in one year