The Infrastructure Development Finance Company (IDFC) declared on Thursday that it will accumulate Rs. 840 crore by issuing shares to Actis and Khazanah, which are a private equity and a Malaysian sovereign wealth fund respectively. The board had allowed Rs 3,500 crore being raised previous month, as a long term fund for financing its development plans. Rs 2,654 crore has already been raised.

The approval of the shareholders was achieved by IDFC via a postal ballot to obtain Rs 840 crore worth funds through convertible preference shares (CCPS).

These shares, convertible into equity within 18 months at Rs 176 each, were raised from Khazanah for Rs 380 crore and from Actis for Rs 460 crore. This makes Khazanah a holder of 8.97 percent stake in IDFC, which had been acquired by Actis in Rs 848.16 crore.

After the shares have been converted, Khazanah will bear 9 percent and Actis a little more than 1 percent stake in IDFC. In the previous month, IDFC was categorized by RBI as being an infrastructure finance company under the NBFC category.