IDFC substitutes to buy operational road projects

Q: IDFC substitutes have the intention to invest Rs.4000 crore in infrastructure projects across power, roads, ports and airports over 18-24 months.

Anirudh Patel, Mumbai

16th September 2015

Real estate News in Mumbai

real estate

road projects

infrastructure projects

larsen & toubro

l&t

idfc alternatives ltd

idfc substitutes

Follow Discussion

Also see discussions for

Mumbai Real estate News Real estate News in Mumbai

Replies (4)

@Saras,,,,,
It is absolutely right that from the beginning of 2014 till date, private equity and venture capital firms and angel investors have invested a total of $1861.62 million in 50 projects across roads, ports, power and renewable energy.

Jamuna sikhri, Delhi-NCR

18th September 2015

Comment

Hi folks!!!
Do you know that last year, IDFC Alternatives' India Infrastructure fund raised Rs.5500 crore to invest in power generation, renewable energy, roads, ports and airports. From this fund, they have about Rs.4000 crore left to invest and they expect to completely unwind this over the next 18 to 24 months. The firm is willing to invest in good projects with stressed sponsors and not stressed projects.

Shrikant Kejriwal, Mumbai

17th September 2015

Comment

I have read that nearly 150 road projects are up for sale as infrastructure developers try and reduce debt on their balance sheet. Long-term investors, many of which were careful of the Indian infrastructure sector so far. They are also starting to show interest in cash-flow generating business.

Diwakar Shetty,

16th September 2015

Comment

For road sector, IDFCs' strategy is to obtain controlling shares in operational projects and merge the shares into a holding company, which can in the end be listed through an IPO or InvIT (infrastructure investment trust) route. They are also willing to sell the portfolio to investors looking for long-term yield.

Nandakishore, Ahmedabad

16th September 2015

Earlier this month, the company is looking to sell some of its non-core assets, including its highway projects, but will not do a distress sale.

L&T's road projects are in the market for about 4 months and they will definitely sell when they get a good price. Company's portfolio of build-operate-transfer (BOT) assets, which includes highways, bridges, seaports, transmission lines, wind energy and metro rail, are under the infrastructure subsidiary L&T Infrastructure Development Projects Ltd (IDPL).

Diwakar Shetty,

16th September 2015

Even i heard the same. L&T's 17 road projects are in the states of Tamil Nadu, Haryana, Telangana, Gujarat, Rajasthan, Maharashtra, Karnataka and Odisha spread over 7800 lane km with a project cost of about Rs.18100 crore. While it is true that IDFC Alternatives are looking at L&T's road assets, they are also talking to several other companies who are in the market to sell their projects.

L&T has mandated EY to look for buyers. EY did not respond to an email query sent on 10 September.

Saras, Noida

16th September 2015

Yes, firm in discussions with many developers including L&T Ltd. to invest Rs 4000 crore in infrastructure projects across power, roads, ports and airports over the next 18-24 months. The company, which invests in a variety of assets, has invested nearly $1 billion in 20 infrastructure projects in India so far.

Diwakar Shetty,

16th September 2015

Comment

As per IDFC, road sector is a key focus area for the fund and they are analyzing various projects for prospectives benefits. They are already in active discussions with many developers to get 100% share in road projects,

A recent relieving of government norms, allowing road developers to fully divest their operational projects that is leading to a pickup in deal activity across the sector.

Sankalp, Mumbai

16th September 2015