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IDFC Ltd.

BSE: 532659 Sector: Financials
NSE: IDFC ISIN Code: INE043D01016
BSE 16:01 | 20 Jul 44.10 -0.50
(-1.12%)
OPEN

45.00

HIGH

45.00

LOW

43.95

NSE 15:57 | 20 Jul 44.20 -0.55
(-1.23%)
OPEN

44.90

HIGH

45.10

LOW

44.05

OPEN 45.00
PREVIOUS CLOSE 44.60
VOLUME 434222
52-Week high 68.00
52-Week low 42.90
P/E 47.42
Mkt Cap.(Rs cr) 7,040
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 45.00
CLOSE 44.60
VOLUME 434222
52-Week high 68.00
52-Week low 42.90
P/E 47.42
Mkt Cap.(Rs cr) 7,040
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

IDFC Ltd. (IDFC) - Company History

IDFC Limited erstwhile Infrastructure Development Finance Company Limited is a financial conglomerate and is registered with Reserve Bank of India as an NBFC. It is a holding company mainly holding investment in IDFC Financial Holding Company Limited (IDFC FHCL) which is a non-operative financial holding company. IDFC FHCL in turn holds investments in IDFC Bank IDFC Asset Management Company Limited IDFC Alternatives Limited IDFC Securities Limited and IDFC Infrastructure Finance Limited. IDFC's main subsidiary is IDFC Bank. Besides banking it also has investments in various financial services businesses such as Asset Management (both public markets and private markets) Institutional Broking & Research and Infrastructure Debt Fund. All these businesses are carried out through independent subsidiaries. IDFC holds all these investments under IDFC Financial Holding Company Limited. 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 Governor of 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 alongwith 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.On 3 June 2011 IDFC and Khazanah agreed to enter into a joint venture (JV) to set up a dedicated infrastructure development company with a focus on road sector in India. Khazanah would hold 80.1% of the equity share capital in the proposed JV and the balance would be held by IDFC. Khazanah and IDFC also propose to invest in convertible instruments issued by the JV. The first investment of this JV will be in Jetpur Somnath Tollways Limited (JSTL) subject to receipt of necessary regulatory approvals and permissions including those from the National Highway Authority of India. Khazanah is the investment holding arm of the Government of Malaysia entrusted to manage the assets held by the Government and to undertake strategic investments.At the time of announcement of Q1 June 2011 results IDFC on 27 July 2011 announced that its Balance Sheet size crossed Rs 50000 crore mark as on 30 June 2011.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.On 9 December 2011 IDFC and Natixis Global Asset Management (NGAM) announced that NGAM has acquired a 25% stake in IDFC Asset Management Company (IDFC AMC) and IDFC AMC Trustee Company (IDFC AMC Trustee). IDFC AMC is the investment manager of IDFC Mutual Fund and is the IDFC group's asset management platform focused on retail and institutional investors in the public market. NGAM is one the largest asset managers in the world.On 22 February 2012 IDFC informed the stock exchanges that the company has filed the Offering Circular with Singapore Exchange Securities Trading Limited (the SGX-ST) for listing of notes to be issued pursuant to the company's US$ 1500000000 (or its equivalent in other currencies) Medium Term Notes Programme (MTN).The name of the company was changed from Infrastructure Development Finance Company Limited to IDFC Limited with effect from 20 July 2012.On 18 March 2014 IDFC Ltd announced the operationalization of DFID-IDFC loan programme that will support infrastructure projects in the low income states of India. The programme was launched in October 2013.IDFC was granted an in-principle approval by Reserve Bank of India (RBI) on 9 April 2014 to set up a new bank in the private sector under Section 22 of the Banking Regulation Act 1949. Accordingly a new company namely IDFC Bank with a paid up capital of Rs 5 lakh was incorporated on 21 October 2014 at Chennai Tamil Nadu under the Companies Act 2013 to carry out the business of banking. As per the terms and conditions contained in the in-principle approval and the RBI New Banking Guidelines IDFC was required to transfer Financing Undertaking to IDFC Bank. Accordingly the Board of Directors of IDFC at its meeting held on 30 October 2014 approved a proposal to demerge its Financing Undertaking into its wholly owned step down subsidiary - IDFC Bank under a Demerger Scheme. On December 26 2014 the entire equity stake of IDFC Bank held by IDFC was transferred to IDFC Financial Holding Company Limited (IDFC FHCL) thereby making IDFC Bank a wholly owned subsidiary of IDFC FHCL which in turn is a wholly owned subsidiary of IDFC. Pursuant to the Scheme of Demerger IDFC Bank issued and allotted 159.40 crore equity shares to shareholders of IDFC thereby reducing the shareholding of IDFC FHCL from 100% to 53%. The Capital Raise Committee of Directors of IDFC by a special resolution dated 16 September 2014 approved the allotment of 7.3 crore equity shares at a price of Rs 137 per share aggregating Rs 1000.10 crore to Qualified Institutional Buyers. On 31 July 2015 IDFC announced that ahead of its transition into a bank it plans to take additional provisions of approximately Rs 2500 crore in Q2 September 2015 against coal and gas power assets to make sure that in the aggregate 50-60% has been provided for against stressed loan assets many of which will not be NPAs on 30 September 2015. IDFC said it plans to create these additional provisions by utilizing non distributable special reserves that have been created over the past several years subject to appropriate approvals. The net impact these additional provisions will be a reduction in net worth by about Rs 1600 crore.On 20 August 2015 IDFC announced that it has entered into non binding letter of intent with Dilip S Shanghvi and Telenor Financial Services AS for setting up a Payment Bank wherein IDFC and/or its affiliates would hold 19.99% stake. Dilip S Shanghvi is one of the successful applicants who have been awarded the in-principle approval by the Reserve Bank of India for setting up a Payment Bank.On 4 March 2017 IDFC announced that it has decided to acquire the entire remaining stake of approximately 25% held by Natixis Global Asset Management (NGAM) in IDFC Asset Management Company (IDFC AMC) and IDFC AMC Trustee Company (IDFC AMC Trustee). The acquisition is for a cash consideration of Rs 244.24 crore. IDFC AMC is a well established SEBI registered Mutual Fund house in India sponsored by IDFC with average assets under management (AUM) of about Rs 57998 crore on 31 December 2016. IDFC Group and Shriram Group signed an exclusivity agreement on 8 July 2017 to allow for due diligence and discussions to arrive at an agreement on a transaction structure and swap ratio for a strategic combination between certain businesses of the Shriram Group with IDFC Limited and IDFC Bank. However despite best efforts the two groups were not able to reach an agreement on a mutually acceptable swap ratio. Accordingly the exclusivity period was terminated with effect from 30 October 2017.On 28 April 2018 IDFC announced that IDFC Alternatives Limited a wholly owned step down subsidiary of IDFC through IDFC Financial Holding Company Limited has entered into a definitive agreement with Global Infrastructure Partners India for the sale of its infrastructure asset management business. This sale will conclude on the receipt of the requisite regulatory approvals as applicable. IDFC Alternative will continue to manage Private Equity and Real Estate funds and the aforementioned sale to Global Infrastructure Partners India will not have any impact on its Private Equity and Real Estate verticals.