DLF Plans VC Fund for Construction cos.
DLF is looking at setting up a Rs 800-crore venture capital fund with a mandate to invest in companies engaged in equipment management and construction. This is being seen as a strategic move by DLF to support its rapidly expanding construction activities.
The Delhi-based firm has filed documents with Sebi seeking approval for the fund. “It is being processed by Sebi. Therefore, we cannot comment beyond this,” said the DLF spokesman. The realty boom of the past three years has changed the scale at which realty firms work in
DLF has focused on strengthening its execution capabilities. The venture capital fund will augment the company’s efforts towards quicker execution. The fund will invest in small companies that manage equipment, construction material and manpower. The companies may buy advanced equipment- critical for quick execution-and then lease them to DLF. Similarly, these companies can independently manage construction material and manpower and become a source of supply to DLF, whose operations are now spread across the country. These VC-funded firms which are likely to have long-term agreements with DLF, will also have the option to offer their man and material to other developers.
NEW AVENUES
The setting up of the Rs800-cr fund is seen as a strategic move by DLF to support its rapidly expanding construction activities. The venture capital fund will augment the company’s efforts towards quicker execution. The fund will invest in small companies that manage equipment, construction material and manpower. The Delhi-based firm has filed documents with Sebi seeking approval for the fund.
Courtesy: - ET dt:-. 8.07.2008
Date: 09 July 2008, Wednesday
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