Sources tell CNBC-TV18 that Gremach Infrastructure is likely to venture into oil and gas rigs.

Sources said that Gremach Infra is likely to venture majorly into the rig business and may form a 100% subsidiary called Gremach Energy.

They may place 15-25% equity in Gremach Energy to PE player. The move is in line with others like Aban Offhore, Mercator Lines and Jindal Drilling.

The announcement is expected in the next month.

The management of Gremach Infrastructure said that the plans are at a final stage and they are talking to various players.

Sources added that the company has ordered one on-shore rig and it will be delivered in five months. They are planning to order for four more rigs in the next five months.

They will use USD 50 million for the oil and gas business out of the proposed USD 75 million FCCB issue and will raise another USD 200 million via debt.

The Gremach Infrastructure Board has approved raising upto Rs 1,000 crore of money via debt/ equity. The issue of FCCBs is upto USD 75 million.

The market cap of the company is around Rs 300 crore.

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