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Dhir India Inv. plc (DHIR)

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Monday 05 November, 2007

Dhir India Inv. plc

Investment in Goa

Dhir India Investments plc
05 November 2007


5 November 2007

                           Dhir India Investments plc
                        ("Dhir India" or the "Company")

           Acquisition of financial assets of a hotel project in Goa


Dhir India (AIM: DHIR), the first UK quoted company established to invest in the
circa $50 billion* Indian non performing assets sector, announces that it has
acquired an interest in part of the financial assets (debt) relating to a hotel
project in Goa, for a consideration of approx £1.4 million. Dhir India will seek
to aggregate further debt to enable it to take a controlling interest in the
property.

Commenting on the investment, Alok Dhir of Dhir India commented :

"This acquisition offers a number of potential lucrative opportunities. Goa is a
popular tourist destination and the land, with its planning consent, is an
attractive site with significant development prospects."

"The deal flow in India's underperforming assets sector is allowing Dhir India
to be highly selective as to the projects it engages in. The project in Goa has
been identified as an opportunity to generate significant returns over a 12
month period and deliver value to our shareholders."

(*Source: The Wharton School, February, 2007)


For further information, please contact:

Shiva Consultants         Evolution Securities       Tavistock Communications

Alok Dhir                 Tom Price                  Simon Hudson
Shivi Agarwal             Jeremy Ellis               Rachel Drysdale
                          Chris Clarke
Tel: +91 11 42410000      Tel: +44(0) 20 7071 4300   Tel: + 44 (0) 207 920 3150/
                                                          +44(0)7979 497 324

About Dhir India Investments

Dhir India provides shareholders with both income and capital growth and was the
first UK quoted vehicle to provide western fund managers with the opportunity to
invest in the Indian non performing assets market. In July 2007 it raised £ 25
million and commenced trading on AIM.

The Company primarily considers four types of investment opportunity:

   • Turnaround of companies
   • Re-Sale of assets or companies
   • Break-up and sale of assets
   • Bridge financing

The current stock of non performing assets (NPAs) in India was built up
primarily as result of the transformation of the Indian Economy in the 1990s
from the centrally regulated to a more free market economy. During this time,
commercial lending rates were as high as 18-20 per cent per annum, whilst the
industrial growth rate remained sluggish at 2-3 per cent per annum and Indian
Industries could not cope with the competition from international companies,
which did not have such a high cost of capital.

This has created an opportunity to invest in NPAs, which are typically
over-leveraged capital structures with insufficient liquidity and in default of
their obligations to creditors. Often these companies have significant assets
and/or solid underlying business fundamentals, which are not being fully
utillised in spite of the fact that the rate of growth in the industrial sector
has caught up with that of the rest of the economy, being an estimated 9-10 per
cent per annum since 2004-2005.

In such circumstances, Dhir India believes that the resolution of the existing
debts, and in some cases a turnaround of the underlying business, can lead to
substantial profits on exit from the investments being generated in the short
and medium term.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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