L

New Delhi, June 27 (UNI) Engineering and construction major Larsen&Toubro Ltd (L&T) today announced that it has entered into an agreement with Housing Development Finance Corporation (HDFC) to raise Rs 95 crore to tap emerging opportunities in the urban infrastructure sector.

The company has decided to house all existing and future projects within the urban infrastructure space in L&T-UIL, its subsidiary.

''To take advantage of the emerging opportunities in the urban infrastructure sector, L&T has decided to house all existing and future projects within the urban infrastructure space in its subsidiary L&T-UIL. Its strengths in development and construction would be complemented by the domain knowledge of HDFC in urban infrastructure,'' a company statement said here.

As per the agreement, HDFC will hold 14.9 per cent equity and its real estate entity 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.

The HDFC India Real Estate Fund is a scheme of the HDFC Property Fund, a venture capital fund, which is managed by HDFC Venture Capital Ltd, a subsidiary of HDFC. HIREF has a corpus of Rs 1000 crore.

UNI CS DKS RN1546