IDFC Alternatives Limited, a wholly-owned step down subsidiary of IDFC Limited, has announced sale of its infrastructure asset management business to the investment firm Global Infrastructure Partners (GIP) India. The two companies have entered into an agreement for this purpose and the sale will be concluded only after the receipt of the necessary regulatory approvals from Securities and Exchange Board of India (SEBI). Reportedly, SEBI is expected to provide its approval within the next one or two months after which the sale will be complete.
The sale to GIP India will not have any impact on IDFC Alternative’s private equity and real estate verticals and the company will continue to manage its private equity and real estate funds. In addition, the deal does not include the sale of IDFC Alternative’s renewable energy portfolio and the company will continue to acquire renewable energy assets as planned.
In August 2017, IDFC Alternatives had raised Rs 2.5 billion through the sale of non-convertible debentures to repay debt the company’s debt and to refinance two of the solar projects in Punjab that had been acquired from Punj Lloyd. Recently, GIP signed an agreement to acquire a 100 per cent stake in renewable energy project developer Equis Energy. The total transaction value for this deal was $5 billion which included the assumption of $1.3 billion in Equis Energy debt.