Apis Partners to invest in L&T IFD, aims for a 25% stake worth $110M

Apis Partners has signed a binding agreement for the acquisition of the stake and will be investing through one of its funds called Apis Growth Fund II.

UK-based venture capital firm Apis Partners has reportedly announced plans to acquire a 25 per cent stake in L&T Financial Holdings arm L&T IDF (Infra Debt Fund), for US$110 million.

Apparently, the proposed investment is aimed at supporting the growth of the loan book of L&T IDF across various sectors including renewable energy, airports, power transmission, roads and ports. In addition, the funding is likely to consolidate IDF’s technology, capital structure and digitization strategy. For those uninitiated, L&T IDF holds a loan book worth Rs. 8,000 crore.

Authentic sources reported that about 70% of the investment is growth capital for L&T IDF, while 30% would be deployed for a secondary transaction in which shareholders will exit their holdings. Sources further claimed that the partnership with Apis is anticipated to help IDF with gaining access to low-cost international fund sources that will be deployed for refinancing operational infrastructure projects in India.

L&T IDF’s Chief Executive Shiva Rajaraman stated that the Indian infrastructure market provides significant growth prospects for specialized re-financiers such as L&T IDF. He added that the company’s IDF platform will be in a better position to utilize these opportunities through the partnership with Apis Partners and remain a leader in key areas of the infrastructure refinancing space.

Dinanath Dubhashi, the Chief Executive & Managing Director of LTFH (L&T Finance Holdings), an IDF promoter, was reportedly quoted saying that the latest alliance with Apis reflects the value creation offered by India’s infrastructure financing space to the investors who keep looking for long-term sustainable returns. Apis Partners’ Managing Partner & Co-founder, Udayan Goyal, claimed that IDF holds an exceptional track record for refinancing high-potential infrastructure projects as well as raising funds at competitive rates.

Source Credits: https://www.businesstoday.in/top-story/apis-partners-plans-to-pick-25-stake-for-110-million-in-lt-infra-debt-fund/story/340410.html

https://www.thehindubusinessline.com/markets/lt-idf-to-raise-110-mn-from-apis-partners/article26943088.ece