IDFC Alternatives to Sell Infrastructure Asset Management Business to GIP India

IDFC Alternatives Limited, a wholly-owned step down subsidiary of IDFC Limited, has entered an agreement with investment firm Global Infrastructure Partners (GIP) India for the sale of its infrastructure asset management business.

This sale will conclude after the receipt of the required regulatory approvals. IDFC Alternative will continue to manage private equity and real estate funds and the sale to Global Infrastructure Partners India will not have any impact on its private equity and real estate verticals.

Recently, GIP also closed on a deal to acquire a 100 percent stake in renewable energy project developer Equis Energy. The total transaction value of $5 billion included the assumption of $1.3 billion in Equis Energy debt and ranked as the largest renewable energy generation acquisition in history, according to the company.

When contacted, a high-ranking IDFC Alternatives executive told Mercom, “We have signed the agreement, now we are awaiting the approval from Securities and Exchange Board of India (SEBI). SEBI is supposed to provide its approval in the next one to two months’ time, after which the sale will be complete.”

When asked about the renewable energy portfolio managed by IDFC, the executive said, “We are not selling the renewable energy portfolio, we will continue to acquire more renewable energy assets as planned.”

The IDFC executive chose not to divulge the details about the size of the deal between the two firms.

In February 2018, Mercom had reported that Vector Green Energy, a wholly-owned subsidiary of IDFC Alternatives, acquired 40 MW of grid-connected solar photovoltaic (PV) projects in the state of Madhya Pradesh.

In August 2017, IDFC Alternatives had raised ₹2.5 billion (~$39 million) through the sale of non-convertible debentures. The funding was intended to refinance two solar projects in Punjab that IDFC Alternatives had acquired from Punj Lloyd and to repay debt.