L&T plans $500M-$1B IPO in Singapore for toll road assets

September 26, 2013


Business trusts, like real estate investment trusts, offer investors steady dividends, greater control over the assets in the trust and enjoy a favourable tax treatment.


Larsen & Toubro Ltd is planning to list its toll road assets in Singapore in an initial public offering worth between $500 million to $1 billion using a business trust structure, IFR reported on Wednesday.

The earliest date for the IPO is the first quarter of 2014, IFR, a Thomson Reuters publication said, adding the current weak outlook for the Indian economy and the rupee makes it hard to sell a business trust IPO to foreign investors.

Nomura Holdings Inc and Standard Chartered PLC are working with Larsen & Toubro on the deal and others may also join the transaction, IFR said.

Officials with Larsen & Toubro and the banks were not available to comment.

Several other companies such as India’s Infrastructure Leasing and Financial Services, as well as Apollo Hospitals (APLH.NS), have been working on Singapore business trust IPOs for their different subsidiaries in recent months, but without much progress, IFR said.

Business trusts, like real estate investment trusts, offer investors steady dividends, greater control over the assets in the trust and enjoy a favourable tax treatment.


KNR Constructions gets order worth Rs 2,059.96 mn

February 18, 2008

KNR Constructions said that the company`s 50:50 joint venture with Patel Engineering namely Patel-KNR JV has received from NHAI an order worth Rs 2,059.96 million towards balance works of widening 4/6 laning and strengthening of existing 2 lane carriageway of NH-7 (Madhurai- Kanniyakumari section) in the State of Tamil Nadu.

Equity shares of infrastructure firm KNR Constructions (Q, N,C,F)* were listed at the bourses today, Feb. 18, 2008.

The shares opened at a premium of Rs 10, or 5.88%, at Rs 180 compared to the issue price of Rs 170 a share. The scrip has hit a high of Rs 199 and low of Rs 155.65. It is currently trading at Rs 159.60. (12.16 p.m., Monday)

KNR Constructions had come out with an initial public offering (IPO) of 7,874,570 equity shares of Rs 10 each, offering shares in the price band between Rs 170-180 a share. The issue was open for subscription from Jan. 24, 2008 to Jan. 29, 2008.

Source: myiris.com

CRISIL assigned IPO Grade 3/5 to KNR Constructions

December 6, 2007

Leading credit rating agency, CRISIL assigned IPO Grade 3/5 (pronounced `three on five`) to the proposed initial public offer of KNR Constructions (KNRCL). The public issue of 7,874,570 equity shares of face value Rs 10 targeting an issue size in the range of Rs 1,500-Rs 1,750 million. This grade indicates that the fundamentals of the issue are average, in relation to other listed equity securities in India.

The grading reflects KNRCL`s strong track record of project execution in both roads construction and operations and maintenance (O&M). The company has executed many projects as part of the NHAI`s NHDP program and has had a 7-year relationship with Patel Engineering as a joint venture partner.

The KNR-Patel JV has won 10 road construction projects so far. These include two BOT annuity projects as a part of NHDP Phase II, the combined value of which is Rs 9.6 billion. As of September 2007, KNRCL`s order book stood at Rs 16.25 billion, of which the roads sector constituted 89%.

The grading is however constrained by the relatively underdeveloped state of the company`s operating system, which in turn, could constrain its ability to augment the size of its operations. The grading also reflects the uncertainties associated with company`s plans to diversify into the power generation and real estate sectors.

Source: myiris.com

Kaushalya Infrastructure IPO oversubscribed

November 23, 2007

The IPO has so far received 6,11,97,500 bids, giving it a subscription of 7.20 times over the issue size of 85,00,000 equity shares

IPOThe Public Issue of Kaushalya Infrastructure Development Corporation Limited (KIDCO) has been oversubscribed as per the information available on the websites of the stock exchanges. The IPO has so far received 6,11,97,500 bids, giving it a subscription of 7.20 times over the issue size of 85,00,000 equity shares. KIDCO is a diversified infrastructure development company from eastern India, and is offering the shares at a price band of Rs. 50 to Rs 60 per share. The net issue to the public would constitute 40.93 per cent of the fully diluted post issue paid-up capital of the Company. The issue closes on 23rd November.

As a part of its expansion plans, KIDCO will mainly utilize funds for acquisition of land, land development rights & real estate development, investment in BOT/BOOT projects and joint ventures and for the purchase of capital equipments comprising construction & infrastructure equipments for execution of projects .

The infrastructure development operations of the Company are organized in three major business divisions viz. Kaushalya Nirmàn (Specializes in construction of roads, highways, bridges and industrial infrastructure), Kaushalya Gràm (Specializes in Electrification and Irrigation projects focused on development of rural India) and Kaushalya Parivàr (Specializes in Construction of Commercial & Residential Complexes). The key clients of the Company include various Government Undertakings, State Public Works Departments, as well as State and Central Public Sector Undertakings.

Says Prashant Mehra, managing director of KIDCO, “We are on the expansion mode and would be focusing more upon diversified sectors so as to leverage and expand the operations. After our successful journey in the Eastern part of the country, we are spreading our operations to other parts like the Central India.”

KIDCO aims to operate into diversified sectors such as townships, offices, houses and other buildings, urban infrastructure, highways, roads, power systems, irrigation, dams and agriculture systems, etc. which will mitigate business risk in case of slowdown in any one particular field in the future.

The proposed issue will be lead managed by SREI Capital Markets Limited and the Registrar to the issue will be Intime Spectrum Registry Limited.

Source: indiainfoline.com

Western, northern region cos dominate infrastructure space

November 23, 2007

NTPC, Larsen & Toubro and Bharti Airtel top the list (in terms of income) of Dun & Bradstreet India’s list of India’s Leading Infrastructure Companies 2007. This listing, part of D&B’s study on infrastructure in India, profiles 187 companies – 121 from the construction sector, 52 from power and 14 from telecom services. The study provides an industry overview of infrastructure in India and key characteristics of the sampled companies .

D&B’s analysis reveals that companies based in the western (37 per cent) and northern regions (30 per cent) dominate the infrastructure industry. While the initial public offer route is a key means of financing for the construction companies, the infrastructure industry as a whole is funded largely through term loans and self-financing.

Construction goes public The study has disclosed that the construction sector is dominated by public companies (listed and unlisted); these accounted for 92 per cent of the 121 construction companies that qualified under D&B’s selection criteria. Thirty per cent of listed construction companies had absorbed close to Rs 20,000 crore through IPOs in 2006-07. The sample companies plan to raise Rs 2,000 crore more in the near future. Most of the companies that raised money through the IPO were focussed on roads, power, irrigation and residential township projects.

The report also brings out the increasing synergy between private players and the Government. Around 50 per cent of the sample companies have collaborations such as public private partnership, special purpose vehicles, other domestic partnership and BOT and BOOT contracts.

Power’s conventional The study found that India continues to rely on conventional sources such as coal, gas and lignite for power generation. Of the 178 power plants operated by the sample companies, 45 per cent were thermal power plants, 38 per cent hydro based and about 10 per cent be run by Nuclear Power Corporation. Only the rest accounted for unconventional energy sources such as wind farms and combined cycle power plants.

The report stated that Central government owned companies have taken the lead in terms of planned capacity additions, accounting for 52 per cent of the total plan. Private sector, including the two ultra mega power projects accounted for 32 per cent of the addition plans, while state-owned companies trailed behind with plans to add only 16 per cent to their capacity.

Source: thehindubusinessline.com