DLF to foray into insurance business

Wednesday, 30 May 2007, 07:00 Hrs
Printer Print Email Email
New Delhi: Indian real estate major DLF Ltd is set to diversify and enter the insurance segment within a year as it has tied up with US-based Prudential Insurance.

"We have entered into an agreement with Prudential Insurance of US (in February 2007) and the joint venture would help us in developing and selling life insurance products in India," DLF chairman K.P. Singh told reporters here.

Each party would invest to the tune of about $250 million in the joint venture company over a span of seven years, in proportion to their respective shareholdings, of which DLF is currently holding 74 percent, company officials said.

"As our business grows, it only makes sense to diversify and insurance is a big market with huge potential," said Piya Singh, a DLF director.

Among its other new business initiatives, DLF will build a series of mega projects including Special Economic Zones (SEZs), especially for the IT sector, budget hotels and infrastructure.

"We would be leveraging real estate capabilities into related areas like SEZ, infrastructure and hospitality," stressed K.P. Singh.

He said the company has plans to develop luxury, business and budget hotels and serviced apartments. It had tied up with global hospitality chain Hilton last year to develop a chain of hotels across India.

The company is, however, scouting for other partners to establish joint ventures for acquisition and development of budget and luxury hotels.

DLF Wednesday announced its entry into the primary capital market to raise 87.50 billion to 96.25 billion, with a price band of 500-550 per share. Pitted as one of India's largest IPOs, the offer opens June 11 and closes June 14.
Source: IANS
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..