Infrastructure Development Finance Company Ltd has informed BSE that the Company 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. It is proposed that initially IDFC would hold 19.9 % and Khazanah would hold 80.1 % of the equity share capital of the proposed JV. Khazanah and IDFC also propose to invest in convertible instruments issued by the JV.
As its first initiative, subject to receipt of necessary regulatory approvals and permissions, including from the National Highway Authority of India, the JV will invest in Jetpur Somnath Tollways Limited (JSTL). JSTL is a company which undertakes development of a project involving four-laning the Jetpur-Somnath section of the National Highway-8D in the State of Gujarat. 74% of the share capital of JSTL is currently held by IDFC Projects Limited (IDFCPL). 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.
The Company has submitted to BSE a copy of Press Release in this regards.