Lodha Group Soon to Acquire 15% in Vascon Engineers

By looking at the expected growth in affordable housing sector, Lodha Group is going to enter into a strategic partnership with Vascon Engineers. Under the agreement, Lodha Group may acquire up to 15 per cent of the construction engineering company at a premium to the current market price.

Vascon Engineer will issue compulsory convertible debentures through a private placement. Lodha Finserve, the investment arm of Lodha Group, will subscribe to convertible debentures, confirmed by the persons familiar with the structuring of the deal.

As the recent Union Budget completely supported affordable housing by giving it an infrastructure status, this agreement will be relying on the progress of affordable housing and the EPC (engineering procurement and construction) segments.

Currently, there are several other companies which have the certain percentage of ownership of Vascon Engineers. Few promoters own 37 per cent of the company whereas UTI Mutual Fund and Vallabh Bhansali and Aakash Bhansali of Enam Holding own about 2.5 and 7 per cent of Vascon Engineers respectively.

Source: ET Realty

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