Gujarat govt picks GIDC, GMB as equity partners for GIFTCL
SMART CITIES

Gujarat govt picks GIDC, GMB as equity partners for GIFTCL

The Gujarat government has roped in two state government-owned entities with a proven track record in the development of infrastructure as equity partners in the company after the debt-ridden Infrastructure Leasing & Finance Services (IL&FS) exited from Gujarat International Finance Tec-City Co Ltd (GIFTCL) last year.

The government has excluded the option of bringing a private entity on board in the process.

A nodal agency developing industrial estates, Gujarat Industrial Development Corporation (GIDC), owns about 20% stake in GIFTCL currently, while the regulator for all non-major ports and port-led development in the state, Gujarat Maritime Board (GMB), picked up 20% equity stake recently.

The government introduced equity to the tune of around Rs 425 crore to strengthen the base further, and it was after IL&FS completed the sale of its 50% stake in GIFTCL to the Gujarat government, represented by Gujarat Urban Development Company Ltd, which holds the remaining stake. As equity value for shares as sale consideration, IL&FS received Rs 32.71 crore last year.

The overall paid-up capital was around Rs 65.40 crore for GIFTCL a year ago, and currently, it increased to around Rs 490 crore.

An official of GIFTCL told the media that GMB and GIDC have invested Rs 100 crore each for a 20% stake each while GUDC has introduced new equity to the tune of Rs 225 crore, thereby holding around 60% stake in GIFTCL.

It accommodates the country’s first International Finance Service Centre (IFSC), which has captivated leading domestic and international players across the spectrum of financial services, ranging from asset management companies, professional services firms, banks and alternate investment funds since its establishment in 2015.

A senior government official told the media that GIFT City is on a strong pedestal today with GMB and GIDC as equity partners after the exit of IL&FS, which indicates that the government is not considering a partnership with any private entity anytime soon. From the time when the officials of GIFT City were reaching out to companies, they reached a stage today where companies come calling to GIFT City to set up businesses.

Image Source


Also read: Report says Kerala govt can go ahead with GIFT City project

Also read: India’s first Maritime Cluster to be established in Gujarat

The Gujarat government has roped in two state government-owned entities with a proven track record in the development of infrastructure as equity partners in the company after the debt-ridden Infrastructure Leasing & Finance Services (IL&FS) exited from Gujarat International Finance Tec-City Co Ltd (GIFTCL) last year. The government has excluded the option of bringing a private entity on board in the process. A nodal agency developing industrial estates, Gujarat Industrial Development Corporation (GIDC), owns about 20% stake in GIFTCL currently, while the regulator for all non-major ports and port-led development in the state, Gujarat Maritime Board (GMB), picked up 20% equity stake recently. The government introduced equity to the tune of around Rs 425 crore to strengthen the base further, and it was after IL&FS completed the sale of its 50% stake in GIFTCL to the Gujarat government, represented by Gujarat Urban Development Company Ltd, which holds the remaining stake. As equity value for shares as sale consideration, IL&FS received Rs 32.71 crore last year. The overall paid-up capital was around Rs 65.40 crore for GIFTCL a year ago, and currently, it increased to around Rs 490 crore. An official of GIFTCL told the media that GMB and GIDC have invested Rs 100 crore each for a 20% stake each while GUDC has introduced new equity to the tune of Rs 225 crore, thereby holding around 60% stake in GIFTCL. It accommodates the country’s first International Finance Service Centre (IFSC), which has captivated leading domestic and international players across the spectrum of financial services, ranging from asset management companies, professional services firms, banks and alternate investment funds since its establishment in 2015. A senior government official told the media that GIFT City is on a strong pedestal today with GMB and GIDC as equity partners after the exit of IL&FS, which indicates that the government is not considering a partnership with any private entity anytime soon. From the time when the officials of GIFT City were reaching out to companies, they reached a stage today where companies come calling to GIFT City to set up businesses. Image Source Also read: Report says Kerala govt can go ahead with GIFT City project Also read: India’s first Maritime Cluster to be established in Gujarat

Next Story
Real Estate

IHCL’s Gateway brand debuts in McLeodganj, Himachal Pradesh

The Indian Hotels Company (IHCL) has announced the signing of a Gateway hotel in McLeodganj, Himachal Pradesh, marking its foray into the culturally rich hill town. The brownfield project is being developed in partnership with Mcleo Times Square. The 65-key hotel will be located within walking distance of the Dalai Lama Temple and the bustling McLeodganj market. Perched on a cliff, it will offer panoramic views of the Dhauladhar range and surrounding valleys. Key amenities include an all-day dining restaurant, bar, spa, fitness centre, and meeting rooms. Suma Venkatesh, Executive VP ..

Next Story
Infrastructure Transport

Highways Infrastructure Trust adds 10 HAM highway projects from PNC

Highways Infrastructure Trust (HIT), a SEBI-registered InvIT, has added 10 operational Hybrid Annuity Model (HAM) highway projects from PNC Infratech to its portfolio. Spanning around 3,400 lane km, these assets are located across Rajasthan, Uttar Pradesh, Madhya Pradesh, and Karnataka. With this acquisition, HIT’s Assets Under Management (AUM) is expected to rise to around Rs 250 billion—up 2.5 times from March 2024. The new assets are projected to contribute approximately 40 per cent to revenue and 32 per cent to AUM. The acquired projects include PNC Rajasthan Highways, Chitra..

Next Story
Resources

Next Office unveils new brand identity, ‘Design with Purpose’

Next Office Search and Design India has unveiled a refreshed brand identity under the theme “Design with Purpose,” signalling its evolution into a purpose-driven workspace ecosystem. The rebrand underscores the firm’s commitment to blending performance, sustainability, and design intelligence in modern office environments. Established in 2020, the company has rapidly emerged as a trusted partner for businesses seeking agile and high-performing workplaces. The new identity reinforces its core values—client centricity, sustainability, innovation, and adaptability—while emphasising..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?