IDFC and Khazanah to set up a dedicated lnfra development company

Infrastructure Development Finance Company (IDFC) and Khazanah propose to enter into a joint venture (JV) to set up a dedicated infrastructure development company with a focus on road sector in India where IDFC would hold 19.9% and Khazanah would hold 80.1% of the equity share capital of the proposed JV. Both the parties also propose to invest in convertible instruments issued by the JV.

The first investment of this JV will be in Jetpur Somnath Tollways (JSTL) subject to receipt of necessary regulatory approvals and permissions, including those from the National Highway Authority of India (NHAI). JSTL undertakes development of a project involving four-laning the Jetpur-Somnath section of the National Highway-8D in the State of Gujarat. IDFC Projects (IDFCPL) currently holds 74% of the share capital of JSTL. It is proposed that the JV will initially acquire 48% of the share capital of JSTL from IDFCPL and will ultimately acquire the entire shareholding of IDFCPL in JSTL and hold 74% of the share capital of JSTL.

Recently, IDFC has been awarded the Tier III Design certification for their Central Data Center by the well recognized Uptime Institute. With this, the company has become the first financial services company in India to be awarded certification.

The company has posted an increase of 24% in its net profit of Rs 346.55 crore for the quarter ended March 31, 2011 as compared to Rs 278.49 crore for the quarter ended March 31, 2010. Its total income has increased from Rs 941.28 crore for the quarter ended March 31, 2010 to Rs 1303.43 crore for the quarter ended March 31, 2011.

For the year ended March 31, 2011, the company has posted an increase of 26% in its net profit of Rs 1277.14 crore as compared to Rs 1012.83 crore for the year ended March 31, 2010. Total income of the company has increased from Rs 3597.10 crore for the year ended March 31, 2010 to Rs 4560.35 crore for the year ended March 31, 2011.