Infrastructure Development Finance Company
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Infrastructure Development Finance Company Ltd (IDFC) is India's leading integrated infrastructure finance player providing end to end infrastructure financing and project implementation services. The company's main business is to provide finance for infrastructure projects including through ownership of infrastructure assets. They operate a full range of business lines, from project and corporate finance to asset management (mutual funds and alternatives) and investment banking. They are engaged in providing finance and advisory services for infrastructure projects, asset management and investment banking.
Infrastructure Development Finance Company Ltd was incorporated on January 30, 1997, as a public limited company with their registered office at Chennai. In the year 1994, the Department of Economic Affairs, MoF in recognition of the need to develop the country's infrastructure, established an Expert Group on Commercialization of Infrastructure Projects under the chairmanship of Rakesh Mohan. The group reviewed the existing state of infrastructure in the country, including the state of corporate debt market to provide long-term funds to infrastructure projects, and recommended the need for a specialized financial intermediary for funding infrastructure projects. Thus the company was formally incorporated.
The company commenced their business activities on June 9, 1997. In the year 1998, the company registered with the Reserve Bank of India (RBI) as a Non Banking Financial Company (NBFC). In the year 1999, the company was notified as Public Financial Institution. In the year 2000, the company was registered with the Security Exchange Board of India (SEBI) as a merchant banker and as an underwriter. Subsequently, in the year 2001, they made a registration with the SEBI as a debenture trustee. Also, the company set up Infrastructure Development Corporation (Karnataka) Ltd pursuant to a shareholders agreement between IDECK and the State of Karnataka, HDFC and the company. In the year 2002, the company incorporated IDFC Asset Management Company Ltd as a subsidiary company. Also, they incorporated a joint venture company, namely Uttaranchal Infrastructure Development Company Ltd with Government of Uttarakhand. In the year 2003, India Development Fund was formed, in which the company was a sponsor investor. In August 2005, the company's equity shares were listed on NSE and BSE pursuant to an initial public offering.
In the year 2006, they successfully raised $450 million for their second infrastructure focused private equity fund. In June 2006, the company entered into an MoU with SBI Capital Markets Ltd for syndication of debt financing for Infrastructure projects. During the year 2006-07, the company increased their stake in National Stock Exchange of India Ltd to 8.2% by acquiring an additional 6% stake. Also, they acquired 8.71% stake in the Asset Reconstruction Company (India) Ltd. The company along with Citigroup, India Infrastructure Finance Company Ltd and the global private equity player, Blackstone, launched a landmark USD 5 billion initiative for financing infrastructure projects in India. During the year, the company also set up IDFC Project Equity Company Ltd to manage the proposed USD 2 billion third party equity component of the 'India Infrastructure Initiative'. Also, the company acquired 33.33% stake in SSKI Securities Pvt Ltd (SSKI), which is a domestic mid-size investment bank and an institutional brokerage and research platform, with membership of the BSE and the NSE. In May 2008, the company entered into asset management by acquiring the AMC business of Standard Chartered Bank in India, namely Standard Chartered Asset Management Company Pvt Ltd and Standard Chartered Trustee Company Pvt Ltd and the acquired companies was re-branded as IDFC Asset Management Company Pvt Ltd and IDFC AMC Trustee Company Pvt Ltd respectively.
During the year 2008-09, IDFC - SSKI Ltd subscribed 100% of equity shares of IDFC Capital (Singapore) Pte Ltd, a company incorporated in Singapore for an emerging markets private equity fund-of-funds business. During the year, the company established IDFC Foundation to focus on capacity building, policy advisory and sustainability initiatives. Also, the company became a part of Nifty 50 during the year. During the year 2009-10, the company consolidated their position as the country's leading specialist infrastructure finance company and one of the largest financiers of infrastructure in the country with most of their businesses scaling new heights. The company increased their equity stake from 80% to 100% in IDFC Securities Ltd. Also, the company along with their wholly owned subsidiary subscribed 100% equity shares of IDFC Pension Fund Management Company Ltd. During the year, IDFC Capital Ltd subscribed 100% of equity shares of IDFC Fund of Funds Ltd and IDFC General Partners Ltd. Also, the company's 100% subsidiary, IDFC Projects Ltd acquired 51% of equity shares of Dheeru Powergen Private Ltd.
In January 2009, IDFC Projects Ltd signed an MoU with Gujarat State Energy Company Ltd and Bharat Heavy Electricals Ltd (BHEL) to establish a 1600 MW Thermal Power plant at Sarkhadi based on supercritical technology. Also, they signed an MoU with Government of Gujarat to establish a 10 MW Solar Power Project. During the year 2010-11, Jetpur Somnath Highway Ltd (earlier known as IDFC Capital Company Ltd and a direct subsidiary of IDFC) became a subsidiary of IDFC Projects Ltd. A company under the name of Jetpur Somnath Tollways Ltd was incorporated as a Subsidiary of IDFC Projects Ltd. IDFC Projects, along with the other companies, further floated Dheeru Powergen Ltd, which was converted from Private Limited Company to a Public Limited Company. IDFC Asset Management Company Ltd further floated IDFC Pension Fund Management Ltd, one of the Pension Fund Managers appointed by the Pension Fund Regulatory and Development Authority (PFRDA) to manage retirement funds under the New Pension Scheme (NPS) open to individuals in the private sector, and IDFC Investment Advisors Ltd. A company under the name of IDFC Investment Managers (Mauritius) Ltd was has been incorporated as a Subsidiary of IDFC Asset Management Company Ltd. During the year, IDFC Foundation (a Non- Profit Organisation) was incorporated as a wholly owned subsidiary company of IDFC. Further, the shares of the three Joint ventures namely, Infrastructure Development Corporation (Karnataka) Ltd (iDeCK), Uttarakhand Infrastructure Development Company Ltd (UDeC) and Delhi Integrated Multi-Modal Transit System Ltd (DIMTS), which were initially held by IDFC, was transferred to IDFC Foundation and similarly, the units of the Trust, namely India Infrastructure Initiative Trust & India PPP Capacity Building Trust which were initially held by IDFC was also transferred to IDFC Foundation. Further during the year, Uniquest Infra Ventures Pvt Ltd was incorporated as a direct subsidiary of the company and IDFC Capital USA Inc. was also incorporated as a subsidiary company of IDFC Securities Ltd.
In November 2011, SNC-Lavalin Group Inc. and the company announced a joint venture that began with an introduction by Export Development Canada (EDC). The new company, called Piramal Roads Infrastructure Ltd, will work to develop a portfolio of road assets in India.