IDFC raises Rs 840 cr from Khazanah, Actis

Infrastructure Development Finance Company (IDFC) today said it will raise Rs 840 crore through issuing shares to private equity firm Actis and Malaysian sovereign wealth fund Khazanah.

Last month, its board had approved raising Rs 3,500 crore as long-term resources to meet it growth plans. The term lender has already raised Rs 2,654 crore through qualified institutional placement.

"IDFC has sought shareholders' approval through postal ballot for raising Rs 840 crore of capital through a preferential issue of compulsorily convertible preference shares (CCPS) to Khazanah for Rs 380 crore and Actis for Rs 460 crore," IDFC said in a statement, adding the CCPS are convertible into equity within 18 months at Rs 176 a share.

Khazanah currently holds 8.97 per cent stake in IDFC, which the Malaysian fund had acquired in 2007 for Rs 848.16 crore. Following the conversion of the shares, Khazanah would hold over 9 per cent and Actis over 1 per cent stake in IDFC.

Last month, RBI had classified IDFC as an infrastructure finance company within the NBFC category.