India’s IDFC Private Equity is investing Rs1 billion ($21.4 million; €16.8million) for a minority stake in Ashoka Buildcon, a toll road developer.
With offices in Gujarat and Madhya Pradesh, Ashoka has developed nine operational toll road projects, the first of which was the Dulhe town bypass in Maharastra.
IDFC Private Equity is investing from IDFC Private Equity Fund II, a $430 million vehicle that made two investments in India’s healthcare sector in July.
Ashoka and Infrastructure Development Finance Company are part of a consortium that has been selected to develop two major projects awarded by India’s National Highway Development Project. The projects involve the widening of a two-lane national highway, Paresh Mehta, general manager at Ashoka said.
IDFC Private Equity manages two funds including Fund II, totalling $620 million. Its investments include roads, port, airport, hotels, a recreational park and healthcare.