Larsen & Toubro (L&T), the country’s largest infrastructure company, is close to acquiring a stake in Feedback Ventures, a leading integrated infrastructure services firm. L&T’s investment vehicle for the acquisition will be the newly formed L&T Infrastructure Finance.
Sources in the know of the development said L&T Infrastructure’s investment in Feedback would be strategic in nature and bring both the companies closer in the future.
When contacted, sources in Feedback Ventures confirmed that they had held talks with L&T, adding that many private equity players had also shown interest in picking up a stake in the New Delhi-based company.
Sources in L&T said they would not comment on market speculation.
“The company will inform the stakeholder if there is any development worthy of mention on this front,” they added.
Mission Holdings, a group of people who founded the New Delhi-based Feedback Ventures, holds 36 per cent stake. Other shareholders of the closely held company include DLF, HDFC, IDFC and the Thapar group outfit, NewQuest Corporation.
No further details of the proposed deal could be ascertained. Sources in the know said the proposed purchase of stake would not cost L&T much. By the latest stake sale last year, Feedback Ventures was valued at Rs 84 crore, when DLF acquired 19 per cent stake for Rs 16 crore.
The infrastructure company’s valuation has appreciated over the past one year.
L&T is expected to have its nominees on the board of Feedback Ventures, if it acquires more than 10 per cent stake.
DLF, it may be mentioned, sent two nominees to the Feedback board, following its acquisition of 19 per cent stake last year.
L&T Infrastructure Finance, which was recently launched by L&T, is expected to hit the market in three to four years with a public issue.
(Source: Business Standard)
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