IDF invests 20 per cent in GSPL for Rs90 crore
By Our Corporate Bureau | 05 Nov 2004
Chennai: The India Development Fund (IDF), the largest domestic private equity fund for the infrastructure sector has invested Rs90 crore in Gujarat State Petronet Limited. GSPL is setting up a gas grid across Gujarat on a common carrier and open access basis for transporting natural gas, both indigenous as well as imported, to major end users in the state of Gujarat. These funds will be fund the pipeline infrastructure comprising 487km of truck and spur lines.
The Rs843.75 crore fund belongs to IDFC Asset Management Company Limited, a 100 per cent subsidiary of Infrastructure Development Finance Company (IDFC). And the investment is the first private equity investments in the gas transportation sector in the country. As a part of the deal, Darius Pandole, chief operating officer, IDFC Asset Management will join the GSPL board.
According to him, "This project is a critical link between supply centres and demand centres in the state of Gujarat and addresses an existing demand-supply gap. GSPL's vision of rolling out its gas grid in anticipation of new liquid natural gas (LNG) supplies has now become a reality." IDF's investment of Rs90 crore will result in an equity stake of over 20 per cent in the fully diluted equity capital of GSPL.
This is the third investment of the fund, which has already invested in GMR Energy Limited and Freshways Enterprises Private Limited.
