Piramal Group's realty fund picks up 24% in Flagship Infra

NEW DELHI: Ajay Piramal Group promoted real estate fund Indiareit has picked up 24% stake in Flagship Infrastructure that is developing a township project and special economic zone (SEZ) project in Hinjewadi near Pune, a person familiar with the development said.

Indiareit Offshore Fund had subscribed to 4,000 warrants of the entity and is now converting it into equity that will give it a 24% stake. “The warrants are being converted at Rs 55,110 per share translating into a deal worth `22 crore as per an application made to foreign investment promotion board (FIPB),” said the person on condition of anonymity. FIPB is the nodal body that clears foreign investment proposals in the country.

An email sent to a senior executive of Flagship Infrastructure did not elicit any response. Flagship Infrastructure, a venture of the privately-held Paranjape Schemes (Construction), was established in 2005 to develop township and
SEZ project in Hinjewadi
near Pune. It is developing Blue Ridge, a 138-acre township project.
Indiareit Offshore Fund is one of the three funds run by Indiareit Fund Advisors. Its other investments include
a commercial complex in central Mumbai.

Indiareit is picking 24% stake in Flagship Infrastructure that is developing a township project and special economic zone project in Hinjewadi near Pune, a person familiar with the development said.

Indiareit Offshore Fund had subscribed to 4,000 warrants of the entity and is now converting it into equity that would give it 24% stake. "The warrants are being converted at Rs 55,110 per share translating into a deal worth Rs 22 crore as per an application made to foreign investment promotion board (FIPB)," said the person on condition of anonymity.

FIPB is the nodal body clearing foreign investment proposals in the country. An email sent to a senior executive of Flagship Infrastructure did not elicit any response. Flagship Infrastructure, a venture of the privately-held Paranjape Schemes (Construction) Ltd, was established in 2005 to develop township and SEZ project in Hinjewadi near Pune. It is developing a 138-acre township project Blue Ridge.

Indiareit Offshore Fund is one of the three funds run by Indiareit Fund Advisors, which manages assets worth around Rs 1,900 crore. Among other investments of Indiareit Offshore Fund includes a commercial complex in Kurla (Mumbai).