Interim Management Statement

RNS Number : 1997R

Infrastructure India plc

17 August 2010

 



Date:	17 August 2010
On behalf of:	Infrastructure India plc
	Immediate Release

Infrastructure India plc

Interim Management Statement

Infrastructure India plc ("Infrastructure India" or "the Company"), the investment company focusing on Indian infrastructure assets, today releases an Interim Management Statement.  This statement covers the period from 1 April 2010 to 16 August 2010.

The Company invested a total of £13.2 million (Rs 1.1 billion) in Shree Maheshwar Hydel Power Corporation Limited, which was specifically established to own and develop a 400MW hydroelectric power project situated on the Narmada River in Maheshwar, in the southwestern region of Madhya Pradesh in India.  Once fully commissioned, the project is expected to be one of the largest privately owned hydroelectric schemes to be commissioned in India.  The project is expected to commence initial operations during the fourth quarter of 2010 when the first of ten 40MW turbines will be installed.  The first turbine has been delivered to the site and installation and testing is currently in progress. 

The Company also invested £11.3 million (Rs 960m) in a toll road in Central India, representing a 26% shareholding in the project.  The toll road project comprises the development of a single 125 km stretch of highway to be widened and improved to reduce congestion experienced on the route and to provide further scope for traffic growth.   The project is now effectively complete except for continuing work on two bridges crossing a busy railway.  While tolling operations were originally anticipated to commence around April 2010, partial tolling on the first half of the road actually began several months ahead of schedule.  As soon as the remaining work on the bridges is completed, the second half of the road will also begin tolling - this is currently scheduled for the end of September 2010. 

There have been a number of variations to the project specification of the road, in particular in relation to the railway bridges.  In respect of the marginal cost overrun in the project (which was expected at the time of the initial investment), the Company contributed a further £881,000 in October 2009 and approximately £360,000 in June 2010, to maintain its 26% shareholding in the asset.

Together, these two investments account for approximately £25.7 million of deployed capital (including the two cost overrun payments relating to the toll road project), representing a substantial proportion of the net proceeds raised at the time of the IPO.

The Company is pleased with the progress made on its current investments, in particular that the toll road project is reaching its final stages of development and tolling is now anticipated to commence on the entire road in September 2010.

As announced on 29 April 2010, in relation to the investment adviser agreement made between Infrastructure India HoldCo, a subsidiary of the Company, and Bloomsbury Asset Management Advisors ("BAMA"), following service of notice on BAMA on 15 April 2010, the contractual notice period expired and the investment adviser agreement terminated.  The Company does not intend to replace BAMA as investment adviser but instead will rely on its own internal resources and the continued services of its Asset Adviser, Akur Partners LLP. 

Further to the notification from Nortrust Nominees Limited, a member of the Company acting on behalf of Advance UK Trust PLC, requisitioning a general meeting of the Company, the extraordinary general meeting was held on 6 April 2010.  Shareholders representing 85.7 per cent. of the votes cast and 69.4 per cent. of the Company's issued share capital supported the Board and voted against the resolutions to remove three of the four directors of the Company.

On 27 July 2010, the Company announced a placing of new ordinary shares, subject to shareholder approval, to raise gross proceeds of approximately £1.36 million.  The extraordinary general meeting was held on 12 August 2010, and the new shares were admitted to trading on 13 August 2010.  The placing has provided the Company with financial security for at least the following 12 months.

Economic data released from India suggests there is sustained strong domestic demand.  Indian GDP growth indicates continued growth, yet notwithstanding this, one of the major limiting factors to increased growth remains infrastructure constraints.  The Company remains of the belief that India continues to represent an attractive market in which to pursue investment opportunities in the infrastructure sector, recognised as it is by the government of India as a key focus area to allow the country to deliver its growth potential.

There have been no other significant changes in the financial position and performance of the Company over the period since 1 April 2010.

-ENDS-

Enquiries:

Infrastructure India plc	www.iiplc.com
Rupert Cottrell	Via Redleaf Communications
Akur Partners LLP	020 7203 8374
Andrew Dawber / Anthony Richardson / Tom Frost
Smith & Williamson	020 7131 4000
Azhic Basirov / Siobhan Sergeant
Singer Capital Markets Limited	020 3205 7500
James Maxwell / Nick Donovan
Redleaf Communications	020 7566 6727
Emma Kane / Henry Columbine	[e-mail]

 

END

 

 

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