Larsen & Toubro Ltd said on Tuesday the country's leading housing finance company Housing Development Finance Corporation and HDFC India Real Estate Fund will acquire a 25 per cent stake in L&T Urban Infrastructure Ltd.
L&T's subsidiary, L&T Infrastructure Development Projects Ltd and L&T Urban Infrastructure Ltd have signed agreements with HDFC and HIREF, an HDFC Property Fund scheme, to raise Rs 95 crore (Rs 950 million) by way of equity and quasi-equity placement.
As per the agreement, HDFC would hold a 14.9 per cent stake and HIREF a 10.1 per cent equity in L&T-UIL, a subsidiary of L&T Infrastructure Development Projects.
HDFC Property Fund is a venture capital fund, which is managed by HDFC Venture Capital Ltd, a subsidiary of HDFC.
With the proposed investment the post-issue equity valuation of L&T-UIL would stand at Rs 380 crore (Rs 3.8 billion) on a fully diluted basis.
L&T informed the Bombay Stock Exchange that the company's strengths in development and construction would be complemented by the domain knowledge of HDFC and HIREF in urban infrastructure.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group