Infrastructure Development Finance Company
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|Industry||Banking, Financial services|
Infrastructure Development Finance Company is a finance company based in India. It provides finance and advisory services for infrastructure projects as well as asset management and investment banking.
IDFC was incorporated on 30 January 1997 with its registered office in Chennai and started operations on 9 June 1997. In 1998 the company registered with the Reserve Bank of India (RBI) as a non-banking financial company and in 1999 it formally became a Public Financial Institution. IDFC registered with the Securities and Exchange Board of India (SEBI) as a merchant banker and as an underwriter in 2000 and in 2001 as a debenture trustee. The company also set up Infrastructure Development Corporation (Karnataka) Ltd (IDECK) pursuant to a shareholders agreement between IDECK and the State of Karnataka, HDFC and IDFC.
In 2002, the company incorporated IDFC Asset Management Company Ltd as a subsidiary company and Uttaranchal Infrastructure Development Company Ltd, a joint venture with the Government of Uttarakhand. In 2003 it became an investor in and sponsor of the India Development Fund.
In 2006 IDFC raised $450 million for their second infrastructure focused private equity fund. In June 2006, the company agreed a memorandum of understanding with SBI Capital Markets for syndication of debt financing for Infrastructure projects.
In 2006-07, the company increased its stake in National Stock Exchange of India Ltd from 2.2% to 8.2% and acquired an 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 company Blackstone, launched a 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', 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; the acquired companies was re-branded as IDFC Asset Management Company Pvt Ltd and IDFC AMC Trustee Company Pvt Ltd respectively.
In 2008-09, the company subscribed 100% of equity shares of IDFC Capital (Singapore) Pte Ltd, 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. In 2009-10, the company consolidated its position as a specialist infrastructure finance company and one of the largest financiers of infrastructure in the country. 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. IDFC Capital Ltd subscribed 100% of equity shares of IDFC Fund of Funds Ltd and IDFC General Partners Ltd. company
In January 2009, IDFC Projects Ltd signed a Memorandum of Understanding 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. 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 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. The shares of the three Joint ventures Infrastructure Development Corporation (Karnataka) Ltd, Uttarakhand Infrastructure Development Company Ltd, and Delhi Integrated Multi-Modal Transit System Ltd, which were initially held by IDFC, was transferred to IDFC Foundation. 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 the 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 . The new company, called Piramal Roads Infrastructure Ltd, will work to develop a portfolio of road assets in India.
April 2, 2014: RBI grants in-principle approval to IDFC to set up banks. The in-principle approval will be valid for 18 months. RBI gets green signal to issue bank licences.
June 24, 2015;RBI officially granted a banking licence to IDFC
- "Buy IDFC target Rs 61: Manas Jaiswal". The Economic Times. 2017-09-01. Retrieved 2018-01-27.
- Vishnoi, Abhishek. "IDFC bank unit to begin operations from 1 October". Live Mint. HT Media Ltd. Retrieved 2 October 2015.