Infrastructure Development Finance Co (IDFC) is raising Rs 840 crore through issue of compulsorily convertible cumulative preference shares to private equity firm Actis and an investment arm of Malaysian sovereign wealth fund Khazanah.
This is part of a bigger fund raising plan approved by shareholders late last month where IDFC said it plans to raise up to Rs 3,500 crore as long-term resources to meet its growth objectives and the capital adequacy norms prescribed by the Reserve Bank of India. It has already raised Rs 2,654.18 crore through a qualified institutional placement.
Now it proposes to raise the balance amount with Actis pitching in with Rs 460 crore and Khazanah investing Rs 380 crore through CCCPS of Rs 100 each. Post conversion, Actis will own 1.73% stake in IDFC while Khazanah that already owns 8.97% in the firm will raise its holding to 9.18%.
The CCCPS are convertible into equity within a period of 18 months at a price of Rs 176 per share or 3.5% discount to the ruling market price. This would be just marginally more than Rs 168.25 per share at which the firm raised money in the QIP. Post conversion just about 50% of IDFC will come to be owned by FIIs.
Khazanah acquired 8.97% stake in IDFC three years ago for Rs 848.16 crore and with the latest transaction it will raise its total exposure in the firm to Rs 1,228 crore. It had acquired shares at a price of Rs 84 each through bulk deal in 2007.