IDFC inks pact to donate entire stake in IDFC Foundation to Upajeevan Sangathan; stock slips ~2%

28 Oct 2022 , 11:40 AM

IDFC Limited has entered into a “Deed of Donation” for the donation of IDFC’s entire equity stake in IDFC Foundation to Upajeevan Sangathan Foundation.

IDFC Foundation is a wholly owned subsidiary of IDFC that operates as a “not-for-profit” organisation under Section 8 of the Companies Act of 2013.

The IDFC Foundation has invested in two joint venture companies: Delhi Integrated Multi Modal Systems Limited (DIMTS) and Infrastructure Development Corporation – Karnataka Limited (Ideck).

DIMTS is a partnership between the Government of the National Territory of Delhi and the Government of Karnataka. IDFC Foundation holds 50% of the equity capital in DIMTS and 49.50% of the equity capital in Ideck.

Both of these joint venture entities have been divested as a result of the divestment of the IDFC Foundation. IDFC Foundation, as a section 8 company, limits dividend payments and capital repatriation to its members. As a result, IDFC had no financial interest in IDFC Foundation.

Upajeevan Sangathan Foundation is a non-profit company limited by shares registered under Section 8 of the Companies Act 2013, which limits dividend payments and capital repatriation to its members upon winding up/liquidation.

At around 11.44 AM, IDFC was trading at Rs76.20 down by 1.87% from its previous closing of Rs77.65 on the BSE. The scrip opened at Rs78 and touched intraday high and low of Rs78 and Rs76.05 respectively.

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