INDIA BUSINESS WORLD - March 1^st - March 15^th - 2008

INDIA INFOLINE BUYS IT PARK FOR RS 80 CR

Financial services provider India Infoline has acquired IT parkTechscape Towers in Chennai for about Rs 80 crore and is entering into a partnership with Indus group to promote real estate projects. The newly acquired facility will function as a captive centre that will offer back office support for the company's India operations.

The IT park was owned and developed by city-based Indus Group, a 25-year-old realty player promoted by the Lunawath family. The partnership with Indus is part of Indus Infoline's strategy to diversify into the real estate business. Confirming the move, Indus Group joint managing director Mahaveer Lunawath said, "We will jointly promote real estate projects by means of a special purpose vehicle (SPV). As part of this partnership, we have embarked on a commercial project in Madurai and a residential project In Chennai. We will also look at projects in Bangalore and Hyderabad." Officials at India Infoline could not be reached for comment.

India Infoline recently announced that it will raise Rs 555 crore through allotment of 37 lakh shares on preferential basis to Orient Global Tamarind Fund. The India Infoline group, comprising the holding company India Infoline and its whollyowned subsidiaries, offer services such as equity research, equities and derivatives trading, portfolio management services, life insurance and investment banking.