Amarchand and AZB on Actis and Khazanahs 840 crore investment in IDFC

Malaysian Sovereign wealth fund Khazanah along with Actis have invested Rs. 840 crore ($ 180 million) in IDFC. Amarchand advised its long term client IDFC and AZB & Partners advised Khazanah..Malaysian Sovereign wealth fund Khazanah along with Actis have invested Rs. 840 crore ($ 180 million) through Compulsorily Convertible Cumulative Preference Shares (CCCPS) in IDFC (Infrastructure Development Finance Company).The CCCPS are convertible into equity within a period of 18 months at a price of Rs. 176 per share. VC Circle reports that this deal raising is part of a bigger fund raising plan approved by shareholders late last month. IDFC had said that it plans to raise up to Rs. 3,500 crore ($ 770 million) as long-term resources to meet its growth objectives and the capital adequacy norms prescribed by the Reserve Bank of India. It has already raised Rs. 2,654 crore ($589 million) through a qualified institutional placement. Now IDFC proposes to raise the balance amount of Rs. 840 crore ($180 million) in which Actis pitching in with Rs. 460 crore ($102 million) and Khazanah investing Rs 380 crore ($81 million).AZB & Partners advised Khazanah group with Partner Shuva Mandal along with Senior Associate Varoon Chandra and Associate Bhavi Sanghvi.Amarchand & Mangaldas advised IDFC with Capital Markets Partner Yash Ashar and Senior Associate Gaurav Gupte. IDFC QIP, which closed at the beginning of the month, also had Amarchand advise IDFC. S & R and the Singapore office of Linklaters had advised the Bankers CLSA, Morgan Stanley, and Credit Suisse to conclude the QIP.Khazanah will retain shareholding of approximately 9 percent and Actis will hold 1.7 percent. Khazanah’s stake had come down by recent QIP by IDFC. Government holding in IDFC is down to 17 percent, from 20 percent.