DLF to buy 20% in infra firm

Real estate major DLF, which is reviving its plans to tap the market to raise more than Rs 10,500 crore, will purchase 20 per cent stake in Feedback Ventures, an infrastructure development advisory firm, for an undisclosed amount.

"We have agreed to purchase 20 per cent share in Feedback Ventures," company sources said.

Agreements with existing shareholders have already been signed and the company would complete the transaction within next 10 days, sources added. The value of the deal was not known as the stake purchase involved acquisitions from various shareholders.

"We are buying stake in Feedback Ventures because it has good technical consulting manpower to give advisory services in infrastructure projects," they said.

Through this acquisition, DLF aims to service its infrastructure projects, which includes SEZs and townships. DLF had floated a joint venture company with UK-based Laing O'Rourke to foray into infrastructure sectors such as airports.

The Vinayak Chatterjee-promoted Feedback Ventures offers advisory services for infrastructure projects right from conceptualisation to commissioning in sectors like highways, aviation, ports, SEZs, IT Parks, townships, retail and hospitality.

At present, the promoters own 31.3 per cent share in the company, while IDFC has 21.8 per cent stake, Thapar Group 13.3 per cent and HDFC 12 per cent.

Feedback Ventures has 480 professionals, of which 285 are engineers and the company plans to take that figure to 600 by end of the current financial year.

The order-book of Feedback Ventures, which has NHAI as its main client, on March 31, 2006, stood at Rs 38 crore, sources said.

DLF has already got final approvals for five SEZs and in-principal approvals for eight SEZs, of which three are multi products, which would involve an investment of about Rs 30,000 crore.