Chennai realty fetches Rs 298 cr in HFCL kitty

Telecom equipment maker Himachal Futuristic Communications (HFCL) has sold 11 acres of land for Rs 298.10 crore in Chennai. The deal fetches Rs 27.1 crore for every acre of land, the highest in the city.

This deal helps HFCL to realise more than five times of its acquisition cost of Hindustan Teleprinters six years ago. HFCL had purchased 74 per cent stake in Hindustan Teleprinters in 2001 for Rs 55 crore when the government put the company up for grab as a part of its disinvestment programme.

This land, which was owned by HFCL's wholly owned subsidiary Hindustan Teleprinters, was sold to the Bangalore-based firm RMZ Corporation and the US-based AIG Fund. HFCL officials declined comments.

The plot was a part of Hindustan Teleprinters' 46 acres of land in Chennai and was sold through e-auction that witnessed intense bidding by eight companies, including a couple of international realty funds. It is learnt that Hyderabad's Lanco Infratech and Chennai's Appasamy Real Estate group participated in the bidding.

Bankers said some private equity funds, including the US-based New Enterprise Associates, had shown interest in acquiring stake in HFCL Infotel, a part of HFCL. A private equity fund might shortly acquire a sizeable stake through subscription of preferential shares, they said.

HFCL Infotel offers CDMA-based wireline, fixed wireless and mobile services in Punjab. The promoters hold over 62 per cent stake, private corporate bodies hold 19 per cent and financial institutions 17 per cent.