SREI INFRASTRUCTURE FINANCE LTD CMP 69.1 02/03/2010
Scrip Name : SREI Infra Group : B
Scrip Code : 523756 Scrip Id : SREINFRA Face Value : 10
A lot of developments taking place , here are my bits and pieces.
Company Overview
Srei is a Holistic Infrastructure Institution, constantly and consistently ideating to deliver innovative solutions in infrastructure space, thus playing a significant role in nation-building for over two decades, both in urban and rural India. Srei's businesses include Infrastructure Equipment Leasing & Finance, Infrastructure Project Finance, Advisory & Development, Insurance Broking, Venture Capital, Capital Market and Sahaj e -Village. Srei has a pan-India presence with a network of 63 offices and has also replicated its business model overseas with three offices in Russia. Srei is the first Indian infrastructure financing institution to get listed on the London Stock Exchange. Srei Equipment Finance Pvt. Ltd., a joint venture between Srei Infrastructure and BNP Paribas Lease Group, a wholly owned subsidiary of BNP Paribas, is a Srei Group company engaged in Infrastructure Equipment Leasing and Financing Business.
With a customer base of over 15,000, over Rs. 12,000 crore in Consolidated Assets Under Management and total capital base of over Rs. 700 crore, Srei today has emerged as the largest player in a fiercely competitive market of infrastructure equipment financing. Srei has entered into a strategic alliance with BNP Paribas Lease Group, a subsidiary of BNP Paribas of France, for equipment financing business through a joint - venture. The JV will expand to financing in new areas such as agriculture equipment, medical equipment, information technology and other equipment classes.
Srei has taken the initiative of building rural infrastructure in the country on an information and technology platform under the National e-Governance Plan of the Government of India. This mega project envisages setting up nearly 29,000 common service centres in six states and will offer a host of B2B, B2C and G2C services over 30 crore rural population.
To broad base its shareholding, Srei was the first Indian Infrastructure Financing Institution to be listed on the London Stock Exchange (LSE) way back in 2005. Besides, many international institutions including International Finance Corporation (IFC) Washington (World Bank Group), KfW & DEG Germany (Financial Institutions owned by the Government of Germany), FMO (Financial Institution owned by the Government of Netherlands), BIO (Financial Institution owned by the Government of Belgium) and FINFUND (Financial Institution owned by the Government of Finland) are among the stakeholders in the Company.
FROM RECENT BUDGET
Energy
60. Government accords the highest priority to capacity addition in the power sector. The framework for induction of super critical technology in large capacity power plants of National Thermal Power Corporation is now in place. The Mega Power Policy has been modified and is now consistent with the National Electricity Policy, 2005 and Tariff Policy, 2006. It will help in lowering the cost of generation and the cost of power purchased by distribution utilities. I have more than doubled the plan allocation for power sector from Rs.2,230 crore in 2009-10 to Rs.5,130 crore in 2010-11. This does not include allocations for RGGVY, which is a part of Bharat Nirman.
61. Coal is the mainstay of India's energy sector and 75 per cent of the power generation is currently coal based. It is proposed to introduce a competitive bidding process for allocating coal blocks for captive mining to ensure greater transparency and increased participation in production from these blocks.
62. Government proposes to take steps to set up a "Coal Regulatory Authority" to create a level playing field in the coal sector. This would facilitate resolution of issues like economic pricing of coal and benchmarking of standards of performance.
63. The Jawaharlal Nehru National Solar Mission envisages establishing India as a global leader in solar energy. An ambitious target of 20,000 MW of solar power by the year 2022 has been set under the mission. I propose to increase the plan outlay for the Ministry of New and Renewable Energy by 61 per cent from Rs.620 crore in 2009-10 to Rs.1,000 crore in 2010-11.
64. The Ladakh region of Jammu and Kashmir faces an extremely harsh climate and suffers from energy deficiency. To address this problem, it is proposed to set up solar, small hydro and micro power projects at a cost of about Rs.500 crore.
Srei to pick up 30% in Bhaskar Solar for Rs 5,000 cr
Srei Infrastructure Finance is close to picking up between 15 and 30 percent stakes in Bhaskar Silicon, which is putting up the world's first and the largest integrated Solar Power Plant and India's first Polysilicon-Solar Plant in Haldia, West Bengal with a capital outlay of Rs 5000 crore.
Earlier, the ¤375 million Centrotherm Photovoltaics, one of the world’s leading providers of technology and services for the photovoltaics industry, and Perseus LLC, the Washington-headquartered merchant bank and private equity fund management company (which manages seven investment funds with capital commitments totalling nearly $2 billion and co-manages a $449 million fund), had agreed to pick up significant stakes in the company.
Confirming the developments, Srei’s vice-chairman and managing director Hemant Kanoria told Financial Chronicle, “Yes we are close to picking up substantial stakes in Bhaskar Silicon, with power being one of the thrust areas for the group. We may take up to 30 per cent stakes but under no circumstances it will be less than 15 per cent.”
Refusing to divulge the exact value of their equity infusion, Kanoria said, “We will have both equity and debt exposures into the company.”
Earlier, the company had announced that nearly Rs 1,500 crore would come as equity while the rest would come as debt.
It may be mentioned that Srei Infrastructure Finance and Bhaskar Silicon had already participated in a consortium called India Power Corporation (IPCL) to pick up a controlling 57.17 per cent stake in power utility DPSC.
Srei’s power arm already runs two 35mw wind power units in Karnataka and Gujrat and waiting for the “right opportune moment to grow-organically and inorganically”, said Kanoria. “We have sufficient reserves and sufficient line of credit to finance our expansions on the power front. But we are not in a hurry. We will grow cautiously, conservatively and yet aggressively,” added Kanoria.
http://www.mydigitalfc.com/stock-market/srei-pick-30-bhaskar-solar-rs-5000-cr-259
RBI has issued a notification for introducing a new category of NBFCs
as Infrastructure Finance Companies (IFCs) in view of the critical role played by them in providing credit to the infrastructure sector.Companies like SREI will benefit.
http://rbi.org.in/scripts/NotificationUser.aspx?Id=5503&Mode=0#A
Srei Infrastructure, Quippo merger in April / BONUS 4:5
Kolkata: Srei Infrastructure Finance has decided to merge its its associate company Quippo Infrastructure Equipment with itself in order to bring both the companies’ infrastructure business under one umbrella.
Accordingly the shareholders of Quippo, in which Srei holds 17% and the Kanoria family 58%, will receive three shares for every two shares held in Quippo, Hemant Kanoria, chairman and managing director of Srei Infrastructure Finance, said.
He said the promoter’s shareholding in Srei would also go up from 30% to 46% after the merger with the net worth of the combined entity reaching Rs 2,000 crore. Srei’s net worth as on March 2009 was Rs 750 crore, he added.
Quippo's business activity involves construction equipment, energy, oil and gas equipment and telecom tower infrastructure rentals. The merger will be effective from April 1, 2010, Kanoria added.
With the merger, Quippo Infrastructure’s all five subsidiaries will come under Srei. Quippo Telecom Infrastructure Ltd (QTIL), which picked up 49% stake in Wireless Tata Telecom Infrastructure (WTTL), the Tata Teleservices’ tower arm, will also come under Srei after the merger.
The Srei board has also decided to capitalise a part of its reserves and issue bonus shares at a ratio of 4:5 to the shareholders of Srei.
Srei Infrastructure has reported a net profit of Rs 44.20 crore for the third quarter of the current fiscal, against Rs 8.77 crore in the same period last fiscal.
Consolidated disbursement done by Srei during the quarter to December 31, 2009, was Rs 2,000 crore, against Rs 295 crore in the same period last fiscal.
Srei at the end of the third quarter of the fiscal has assets worth of Rs 12,161.45 crore under its control, compared with Rs 10, 024.90 crore worth of assets under its control during the corresponding period last fiscal.
http://www.financialexpress.com/news/Srei-Infrastructure--Quippo-merger-in-April/572808/
http://www.bseindia.com/qresann/news.asp?newsid={9461F03B-96E1-48D1-8D25-C8CC96892DD8}¶m1=1
Quarterly Results of SREI Infrastructure Finance ------------------- in Rs. Cr. -------------------
Dec '08 Mar '09 Jun '09 Sep '09 Dec '09
Sales Turnover 40.56 72.47 55.93 119.92 127.19
Other Income 0.06 0.41 -- 0.04 0.10
Total Income 40.62 72.88 55.93 119.96 127.29
Total Expenses -6.89 17.31 12.32 12.35 13.42
Operating Profit 47.45 55.16 43.61 107.57 113.77
Gross Profit 47.51 55.57 43.61 107.61 113.87
Interest 41.41 77.44 7.14 79.40 68.54
PBDT 6.10 -21.87 36.47 28.21 45.33
Depreciation 2.13 3.22 2.44 2.44 2.49
Depreciation On Revaluation Of Assets -- -- -- -- --
PBT 3.97 -25.09 34.03 25.77 42.84
Tax 1.62 -24.65 -- 8.19 14.34
Net Profit 2.35 -0.44 34.03 17.58 28.50
Earnings Per Share 0.20 -- 2.93 1.51 2.45
Equity 116.29 116.29 116.29 116.29 116.29
Reserves -- 560.77 -- -- --
Face Value 10.00 10.00 10.00 10.00 10.00
NSE BULK DEAL Data for SREINTFIN from 01-02-2010 to 02-03-2010
26-Feb-2010 SREINTFIN SREI Infrastructure Finan JHUNJHUNWALA REKHA BUY 625,000 65.11
02-Mar-2010 SREINTFIN SREI Infrastructure Finan JHUNJHUNWALA REKHA BUY 625,000 69.31
TECHNICALS
MORE ON SREI ---
http://www.srei.com/Scripts/IRAnalystReport.aspx
NINA
