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L&T Infocity to sell stake in Hyderabad exhibition center project

The company is expecting to get around Rs 70 crore towards the sale of 58 per cent equity it holds in the exhibition center project

B Dasarath Reddy  |  Hyderabad 

L&T Infocity Limited, which had built properties such as Cyber Towers, the first land mark structure for IT and software in Hyderabad, is planning to exit from Hitex Exhibition Center, a property spread across 50 acres adjoining the International Convention Center here.

The company is expecting to get around Rs 70 crore towards the sale of 58 per cent equity it holds in the exhibition center project. The remaining stake is held by National Academy of Construction (NAC) and other government departments.

"As our parent company is now engaged in building a large project like the Hyderabad Metro Rail in the city, we want to shift our focus from non-core activities," said a senior official of L&T Infocity while giving reasons for the proposed exit.

The exhibition center containing 3 large air conditioned halls with a size of 3,500 square meters each, has hosted several international trade fairs since it was started in the year 2003. There are plans to expand the project by adding 4 more halls of the same size. The facility was built on a leased land owned by NAC.

L&T Infocity had  sought permission from the state government as the company was formed in joint venture with Andhra Pradesh Industrial Infrastructure corporation (APIIC). APIIC holds 11 per cent equity in the company. However, it is yet to initiate the process of stake sale in the project due to delay in clearances from the finance department. "We are in touch with the government officials for the clearance," the L&T official said.

APIIC vice chairman managing director B R Meena said the corporation has broadly in agreement with L&T Infocity management's views that it would want to exit from non-core areas.

However, the company has no plans to sell its stake in Cyber Towers, according to the company official.

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First Published: Mon, September 24 2012. 13:11 IST