HDFC, HIREF to buy 25% stake in L&T-UIL

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.

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