O NE FIR M
Integrating IDFC’s Business Platforms
IDFC has emerged as a leading knowledge driven financial services
company in India playing a lead role in driving infrastructure
development in the country.
In recent years IDFC has rapidly expanded its capabilities and
added new business segments through both organic growth and
acquisitions. This growth places a particular focus on our creativity
in aggregating our diverse competencies and strengths into a
single integrated firm that is able to deliver superior value to all
stakeholders.
MISSION
R E WA R D
shared mission,
values and
common culture
reward design
reflecting
shared destiny
Creating a common culture and a sense of
share purpose
Linking rewards with firm performance
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I D F C A N N U A L R E P O R T 09 –10
BRAND
common
identity and
brand
Strengthening the IDFC brand. Positioning
as One Firm
The ONE FIRM initiative focuses on this effort. It seeks to forge a
sense of shared purpose and values that will underpin our common
identity and brand. Through this effort IDFC will emerge a more
aligned and integrated firm that is able to better leverage its diversity,
talent and expertise to deliver an enhanced value proposition to clients,
improve shareholder value and realize its mission - “To be the leading
knowledge driven financial services firm, creating enduring value,
promoting infrastructure and nation building in India and beyond.”
One dream transformed a nation, one stone builds the foundation,
ONE FIRM will drive the growth of India’s infrastructure - IDFC.
A R C H I T E CT U R E
aligned
organisation
architecture
Delivering an enhanced value proposition
to stakeholders
EMPLOYEE
consistent
employee
experience
We all work for One Firm - IDFC
Glimpse of some of our successes
across verticals in the following pages
C O M M U N I C AT I O N
platform centric
communication
Communicate a common & single brand
internally to all employees and focus on
creating an emotional connect with IDFC
ONE FIRM
11
W I PRO
How IDFC verticals helped a JV raise Rs. 500
crore for a project to provide IT services for
Delhi International Airport
IDFC was the sole lender of the project
THE CASE
THE CHALLENGE
Wipro bid and won a contract to develop an IT system for
Terminal 3 of Indira Gandhi International Airport at New
Delhi. A company called Wipro Airport IT Services Limited
was formed as a joint venture between Wipro and Delhi
International Airport Pvt. Ltd., where Wipro holds
74 per cent stake. The JV then entered into a Master Services
Agreement (MSA) to provide airport IT infrastructure and
services at Terminal 3.
External finance requirement for the project (including the
cost of hardware, software and implementation) was
Rs. 500 crore. Terminal 3 will cater to all international and
non-low cost carrier domestic flights to and from Delhi.
Information technology is a key driver for critical airport
operations.
I D FC CA P I TA L
Stepped in to leverage its
strong relationship with the
Wipro Group.
IDFC Capital, with inputs
from IDFC Project Finance
and IDFC Legal then put
together a unique financing
structure that met with the
expectations of Wipro.
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I D F C A N N U A L R E P O R T 09 –10
I D F C P R O J E CT F I N A N C E
Assisted in transaction
structure and achievement
of financial closure in a short
period.
ASHOKA
BUILDCON
Four IDFC verticals tied up with
infrastructure company Ashoka Buildcon, to
win and finance two highway projects.
THE CASE
THE CHALLENGE
Ashoka Buildcon Ltd. (ABL) tied up with IDFC to bid for two
contiguous national highway projects on NH-6 in Chhattisgarh
and Maharashtra. The National Highways Authority of India
awarded both the projects to the ABL-IDFC consortium. The
combined cost of the projects was Rs. 1,115 crore.
1 Raising the equity in a market that had turned overcautious. At this time it seemed like an uphill task to solicit
proposals from equity investors to take equity stakes in the
projects.
2 Structuring and syndicating Rs. 785 crore of debt for the
projects was a challenge.
I D FC CA P I TA L
I D F C P R O J E CT F I N A N C E
IDFC Project Finance team
appraised the projects and
structured the debt. IDFC has
also provided part of the debt
for the projects.
I D F C P R O J E CT E Q U I TY
785
Successfully syndicated
the debt for the projects
during the peak of the financial crisis.
Assisted ABL in soliciting
proposals from equity
investors to acquire an equity
stake in the projects.
232
India Infrastructure
Fund, managed by
IDFC Project Equity, offered the
most competitive terms to ABL and
committed to invest in both the
projects.
I D F C P R I VAT E E Q U I TY
100
Invested Rs. 100 crore
in ABL and own 15.62%
of the Company.
As a result of this joint effort by IDFC,
IDFC Capital and IDFC Project Equity,
ABL was able to commence work on two
capital intensive projects right in the
middle of global recession.
Assisted in diverse areas
including fund raising, HR
matters and business development.
ONE FIRM
13
*A L L F I G U R E S I N R S C R O R E U N L E S S O T H E R W I S E S T A T E D
GUJARAT
PIPAVAV
IDFC, through its verticals has helped
Gujarat Pipavav Port Ltd. to complete port
infrastructure improvement, which are now
comparable with competing ports.
THE CASE
THE CHALLENGE
Gujarat Pipavav Ports Ltd. (GPPL) operates a multipurpose port
at Pipavav, Gujarat with a container and bulk capacity of
6 lakh TEUs per annum and 5 million metric tonnes per annum.
IDFC has partnered the company since 2005 and has facilitated
the financing of the project both through debt and equity.
1 Funding requirement In 2005, GPPL needed finance
to develop and expand the port. IDFC stepped in then and
provided debt worth Rs. 445 crore towards this project. In
FY2010, GPPL, in consultation with IDFC, reassessed the
business plan, the revised project cost estimates, and the
funding requirement for the project.
IDFC
1,000
Underwrote and
successfully arranged
debt
The legal due-diligence,
including common loan
documentation for the
consortium, was led by IDFC’s legal
team.
I D F C P R I VAT E E Q U I TY
I D FC CA P I TA L
Coordinated the debt
syndication exercise with
IDFC Limited acting as the lead
bank amongst 8 banks and finance
institutions (FIs) in the lender’s
consortium
During 2005, played
an instrumental role in
supporting APM Terminals to take
control of the project from the
erstwhile promoter.
200
Is the largest financial
investor in the company.
It has invested Rs. 200 crore in the
project.
The smooth coordination between IDFC verticals has made GPPL a success story.
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I D F C A N N U A L R E P O R T 09 –10
*A L L F I G U R E S I N R S C R O R E U N L E S S O T H E R W I S E S T A T E D
G REEN INFRA
Green Infra's acquisition of a high quality
portfolio of windfarms was possible only
because of the seamless partnership between
three verticals of IDFC.
THE CASE
THE CHALLENGE
Green Infra Ltd. (GIL) was set up in 2008 by funds managed
by IDFC Private Equity with an equity commitment of Rs.360
crore and the objective of becoming India's leading renewable
energy-focused independent power producer. In May 2009, GIL
successfully bid for a 99.4 MW portfolio of wind farms owned
by BP Energy (India) Private Limited, (BPEIPL) edging out
strong competition from several larger companies for this high
quality portfolio.
One of the key challenge was financing the transaction in the
midst of a deteriorating external environment. BPEIPL was
keen on closing the deal as soon as possible, the tight timeframe
posed an added challenge. Another key consideration for
BPEIPL was that of a fully funded bid. GIL was a relatively new
player in this sector and these considerations could have come
up in the way of swift closure.
I D F C P R I VAT E E Q U I TY
345
I D F C P R O J E CT F I N A N C E
Partnered GIL and IDFC Private Equity to underwrite the entire
non-recourse long term loan.
This amount included securitisation of carbon emission receipts
receivables of Rs. 25 crore and sub-debt of Rs.15 crore.
I D FC CA P I TA L
Played a vital role in
syndicating the loan to Indian
Renewable Energy Development
Agency and Axis Bank.
Supported this landmark
transaction by providing full
debt financing
Acted swiftly to structure and
fully underwrite the entire
debt to enable GIL to comply with
the bid requirement.
GIL's acquisition of these windfarms was possible in an accelerated timeframe only
because of the seamless partnership between IDFC Private Equity, IDFC Project Finance
and IDFC Capital. The transaction allowed GIL to establish its leadership in the renewable
energy sector while assisting BP to achieve one of its objectives; transitioning the
ownership of these windfarms to an environmentally sensitive partner.
ONE FIRM
15
*A L L F I G U R E S I N R S C R O R E U N L E S S O T H E R W I S E S T A T E D
P LUS
IDFC Projects and IDFC Capital partnered
together to give PLUS Expressways Berhad
a head start to acquire a stake in a highway
project in Tamil Nadu.
THE CASE
THE CHALLENGE
IDFC Projects and PLUS Expressways Berhad (PLUS) have been
working together on road projects in India for over 15 months.
The IP - PLUS JV has submitted RFQs for three projects and are
exploring opportunities to bid jointly for future projects in India.
Advise on acquisitions The company also needed help from an
Indian company to acquire highway projects and advise them
on proposed acquisitions.
I D F C P R O J E CT S
Appraised PLUS about the
credentials of IDFC Capital
and set up preliminary meetings.
IDFC Capital then helped PLUS in
acquiring a highway project and
successfully closed the deal.
I D FC CA P I TA L
INVESTMENT BANKING
TEAM was responsible for the
detailed evaluation of this highway
that consisted of assessing the
target’s business plan and financial
model, coordinating traffic, legal
and accounting due diligence with
various agencies, structuring the
transaction to mitigate various
risks and negotiating the price,
transaction structure and key
covenants in the transaction
documents on behalf of PLUS with
the existing shareholders of the
project company.
IDFC’s two verticals were able to help make an acquisition and win orders in the
infrastructure space.
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I D F C A N N U A L R E P O R T 09 –10
QU IPPO
Quippo’s passive telecom infrastructure
business got a boost thanks to IDFC’s timely
financial interventions
THE CASE
THE CHALLENGE
As early as March 2007, IDFC saw the potential for substantial
growth in the passive telecom infrastructure business,
underpinned by strong subscriber additions in the world's
fastest growing mobile telecom market. IDFC Private Equity
was an early investor in Quippo Telecom Infrastructure
Limited (QTIL), one of India's leading independent tower
operators.
The initial growth capital funding from IDFC Private Equity
went a long way in helping QTIL become a relevant player
in the passive telecom infrastructure space. However,
the transformational acquisition of the passive telecom
infrastructure business of Tata's and the large associated
financing requirement of Rs.2,400 crore was vital to securing
the company's future.
IDFC
IDFC not only assisted Quippo
in partnering with the Tata
Group but also helped it to become
India's largest independent passive
telecom infrastructure provider
with the highest tenancy levels in
the Indian market.
I D F C P R I VAT E E Q U I TY
I D F C P R O J E CT F I N A N C E
128
Equity to support the
company’s growth plans.
100
250
Direct Equity stake
in WTTIL to form a
common shareholder
block with Quippo.
350
74
Infused during the
rights issues.
Lent to fund the initial
capex of Quippo.
Lent to support Quippo’s
acquisition of equity
stake and subsequent de-merger of
tower assets into WTTIL.
500
SHORT TERM
650
Loan to support WTTIL’s
growth plans and to
meet its high capex
requirement.
LONG TERM
250
Invested as preference
equity in WTTIL to meet
its long term funding plans.
TOTAL
452
1,850
ONE FIRM
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*A L L F I G U R E S I N R S C R O R E U N L E S S O T H E R W I S E S T A T E D
awards &
recognitions
IDFC's businesses are today reconginsed
as the leading source of knowledge and
financing expertise in building india's
infrastructure. More than anyone else, we
understand and appreciate the prospects
and challenges in infrastructure and are
committed to implementing innovative
solutions for a sustainable future.
3
RD
in asia pacific
AWA R D S 2 0 0 9
asia money brokers
poll
AWA R D S 2 0 0 9
I D FC P RO J E CT F I N A N C E
As mandated lead arranger for Project
Finance Loans for the period Jan – Dec
2009 by Project Finance International
I D FC SS K I
Poll of Polls Best Local Brokerage
infrastructure
investor
the private equity
international
infrastructure
investor
AWA R D S 2 0 0 9
AWA R D S 2 0 0 9
AWA R D S 2 0 0 9
IDFC PRIVATE EQU I TY
Asian Infrastructure Fund Manager of
the Year
I D FC P R I VAT E E QU I TY
Best Private Equity Firm in India
I D FC P R I VAT E E QU I TY
Asian Infrastructure Deal of Year
lipper fund


I D FC PR E M I E R E QU I TY FU N D
Open ended diversified equitydefensive (3 year ending Dec 2009)
I D FC GOV E R N M E N T
S E CU R I T I E S - S H O RT T E RM
FU N D
Open ended gilt, 1 year ending Dec
2009
AWA R D S 2 0 1 0 I N D I A
IDFC ASSET MAN AG E M E N T
CO MPANY LIMIT E D
IDFC Premier Equity Fund - Plan A,
Growth, Best Fund over 3 years Equity
India
FUND MANAGER
KENNETH ANDRADE
best performance
amongst the 5 star
funds
business standard
fund manager &
business world
smartest fund
manager
best performance top
10% of the category
BUSINESSWORLD AWARDS 2010
IDFC PREMIER EQUITY - PLAN A
Mid cap and small cap equity category
■■
■■
1188
I D F C A N N U A L R E P O R T 09 –10
Based on 3 years CAGR returns ,
25.85%, as on Dec 2009
Average AUM, Rs. 1,145 crore, as on
Dec 2009
In the last 1 year, IDFC Mutual Fund has received a number of
awards and recognitions for their schemes performance from
different research and rating agencies
5 STA R F U N D S B Y I C R A AWA R D S
5 STA R R A N K I N G
Funds across debt and equity recognized as five
star funds by ICRA awards (Feb 2009) - IDFC
Premier Equity Fund, IDFC Imperial Equity Fund,
IDFC Dynamic Bond Fund, IDFC Super Saver
Income Fund
The domestic research agency Value Research
has given 5 Star rankings to Premier Equity Fund
and Imperial Equity Fund in the quarter ending
June 2009.
4 STA R R A N K I N G
“ B E ST P E R F O R M I N G F U N D H O U S E ” B Y
THE ECONOMIC TIMES
Government Securities Fund – PF Plan and
Dynamic Bond Fund has been ranked 4 Star.
IDFC AMC rated as the “Best Performing Fund
House” by the Economic Times (ET) Quarterly
Mutual Fund Tracker for Q1 and Q2 of FY 09-10.
H I G H E ST R A N K I N G S O F C P R 1 & C P R 2
P L AT I N U M C AT E G O RY
IDFC Imperial Equity Fund and IDFC Dynamic
Bond Fund ranked in the “Platinum Category”
which is the highest ranking given to schemes in
Q1 and Q2 2009.
Several IDFC schemes received highest rankings
of CPR1 & CPR 2 by rating agency CRISIL
(subsidiary of S&P).
Scheme Ranking
Agencies
ECONOMIC TIMES
MORNING STAR
VALUE RESEARCH
ICRA
Scheme Name
Ranking / Rating
IDFC Premier Equity Fund
Platinum
IDFC Imperial Equity Fund
Silver
IDFC SSIF- MT
Gold
IDFC Dynamic Bond
Gold
IDFC Imperial Equity Fund

IDFC Premier Equity Fund

IDFC Dynamic Bond Fund

IDFC Classic Equity

IDFC Super Saver Income Fund -ST

IDFC Cash Fund

IDFC Imperial Equity Fund

IDFC Premier Equity Fund

IDFC SSIF- MT

IDFC Premier Equity Fund

IDFC GSF - ST

Economic Times Quarterly MF Tracker Ranking (Best Fund House Quarterly)
Quarter
Fund House Rank
March 09
1
June 09
1
September 09
2
December 09
2
M A N A G E M E N TAD
WIA
SR
CU
D S S&I ORNE C&OA
GN
NA
I TLIYOSNI S
19