Citigroup invests Rs 150 crore in Indu Projects

Citigroup Venture Capital International Mauritius Limited (CVCIML), the private equity arm of CitiGroup, has invested Rs 150 crore ($33 million) in Hyderabad-based infrastructure and real estate player Indu Projects Limited (IPL).

Indu Projects has placed 9 per cent equity at Rs 1,214 per share, and post-issue, the company's equity was at Rs 13.69 crore while its total valuation stood at Rs 1,650 crore. DSP Merryll Lynch was the sole financial adviser to IPL on the transaction.

The proceeds of the private placement are intended to improve the company's networth and fund projects in the commercial and residential space that include construction of 2.8-crore sft of plinth area in Hyderabad, Bangalore, Pune, Coimbatore, Chennai and Nandyal (Andhra Pradesh), an Indu Projects official told Business Standard.

"This investment and commitment by CVC reinforce the growth strategy of IPL over the last five years. We look at this as a long-term alliance with them which will benefit us in a strategic manner," I Syam Prasad Reddy, chairman and managing director of IPL, stated in a press release on Monday.

Indu Projects, which focuses on key drivers for growth within the urban infrastructure domain such as gated community projects, industrial parks, information technology parks and commercial buildings, has over 30 million sft of real estate development under way across the country.