The Hindu Business Line : Indu Projects gets Rs 220-cr pvt equity funding

Hyderabad, Dec. 11 Indu Projects Ltd (IPL), the Hyderabad-based infrastructure company, has received Rs 220 crore private equity funding from Red Fort Capital.

Red Fort Capital, the global real-estate private equity fund, will pick up 49 per cent equity stake in a Special Purpose Vehicle (SPV), floated by Indu Projects for a housing project in Hyderabad. Indu Projects, the holding company, will retain the majority 51 per cent equity stake in the SPV created for implementing the integrated township project that is coming up in Nizampeta area, near Kukatpally, according to sources.

The project, which would be a mixed development — with housing and commercial enterprises — will be launched in the current financial year.

For Indu Projects, this is the first PE fund infusion into its SPVs. Earlier in January 2007, the company received $33 million (Rs 150 crore), investment from the Citigroup Venture Capital International Mauritius Ltd (CVCIML) for a nine per cent equity in the holding company .

SPV as strategy

The company, which is in the process of coming up with an IPO, has adopted the strategy of floating SPVs for its various housing projects, SEZs etc. It is in the process of building a large residential township named Indu Aranya on 50 acres in Bandlaguda.

Similarly, the company has bagged a contract from DuPont, which is setting up its research and development facility near Hyderabad.

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