Larsen & Toubro Ltd (L&T), India's biggest engineering company, has sold its entire stake in an information technology infrastructure developer in Hyderabad for Rs 191 crore ($28.8 million).
Hyderabad-based Ace Urban Developers Ltd bought the stake in L&T Infocity Ltd, L&T said in a statement. The deal was signed on February 18, it added.
L&T owned 89 per cent of L&T Infocity, set up in 1997, while the state-run Andhra Pradesh Infrastructure Investment Corporation (APIIC) held the remaining stake.
L&T Infocity earned a profit of Rs 7 crore on revenue of Rs 36 crore in financial year 2015-16. It built about 5 million sq ft of IT space in Hyderabad over the years and and also owns stakes in HITEX Ltd, an exhibition infrastructure venture, as well as IT parks in Vijaywada and Vizag.
The realty market of Hyderabad has gained some momentum in the past few months. Capital flow has started picking up with Blackstone, one of the biggest owners of commercial property in India, recently clinching a Rs 470 crore deal in the city. This marked the first deal of the investment firm in the southern city.