HDFC, realty fund to buy 25% in L&T Urban Infra

Engineering and construction major Larsen & Toubro today said the country's leading housing finance company Housing Development Finance Corporation (HDFC) and HDFC India Real Estate Fund (HIREF) will acquire a 25 per cent stake in L&T Urban Infrastructure (L&T-UIL).

L&T subsidiaries, L&T Infrastructure Development Projects (L&T-IDPL) and L&T Urban Infrastructure, have signed agreements with HDFC and HIREF, an HDFC Property Fund scheme, to raise Rs 95 crore by way of equity and quasi-equity placement.

As per the agreement, HDFC will hold 14.9 per cent equity and HIREF will hold 10.1 per cent equity in L&T-UIL.

With the proposed investment, the post-issue equity valuation of L&T-UIL will work out to Rs 380 crore on a fully diluted basis. HIREF is a scheme of HDFC Property Fund, a venture capital fund managed by HDFC Venture Capital, a subsidiary of HDFC. HIREF has a corpus of Rs 1,000 crore.

Larsen and Toubro has been engaged in developing urban infrastructure projects across the country for the last several years.