IVRCL Assets & Holdings Ltd
OPERATIONS OF THE COMPANY:
The continued sluggishness in the real estate markets have prompted the
management to reorient the Company's operations. In the process it was
decided that the Company should diversify its operations so as to include
in its fold investments in projects relating to various infrastructure
segments like Roads, Power, Oil and Gas, Water on Build Operate and
Transfer (BOT). Build Own Operate and Transfer (BOOT) Design, Build Own
Operate and Transfer (DBOOT) basis. As a first step, it was decided to take
over two investment subsidiaries of IVRCL Infrastructures & Projects Ltd.,
having investments in such projects. Accordingly, IVR Strategic Resources &
Services Ltd., and IVRCL Water Infrastructures Ltd., which own the
investments in the following Special Purpose Vehicle (SPV) Companies, were
merged with your Company as per the Orders of the Hon'able High Court of
Andhra Pradesh dated 26th February, 2010, effective from 1st April, 2009,
and as a consequence thereof, the said SPVs have become the subsidiaries of
your Company:
Services Ltd., and IVRCL Water Infrastructures Ltd., which own the
investments in the following Special Purpose Vehicle (SPV) Companies, were
merged with your Company as per the Orders of the Hon'able High Court of
Andhra Pradesh dated 26th February, 2010, effective from 1st April, 2009,
and as a consequence thereof, the said SPVs have become the subsidiaries of
your Company:
1. Salem Tollways Limited
2. Kumarapalayam Tollways Limited
3. Jalandhar Amritsar Tollways Limited
4. Chennai Water Desalination Limited
5. SPB Developers Private Limited
6. First STP Private Limited
7. Alkor Petroo Limited
8. IVRCL Building Products Limited
9.. IVRCL Indore Gujarat Tollways Limited
10. Sion Panvel Tollways Private Limited
The Company is now gearing up to raise further resources for investments in
various other sectors like coal mining, oil and gas, besides new projects
in the sectors in which it is currently engaged. It is hoped that the
results of the reorganization shall be visible in the current year's
financials.
a. FUTURE PROSPECTS IVRCL Assets & Holding Limited expects to emerge as a major player in developing and owning infrastructure assets in highways, oil and gas, power, ports and desalination to name some of the significant sectors that the company is currently targeting in the next few years. The Company will draw from its parent company, IVRCL, the experience and core competence built over the last two decades in executing the awarded projects and those in the pipeline into viable and successful ventures and assets. Besides highways, the company will be bidding for build, operate and transfer (BOT) projects in power transmission, water, crude oil storage, parking lots, truck terminals and ports.
Future Prospects:
IVRCL Assets & Holdings Limited (IVRCL A&H), formerly IVR Prime Urban
Developers Ltd, and a subsidiary of IVRCL Infrastructures & Projects Ltd
has been formed as a holding company for the infrastructure assets of IVRCL
and to fund the capital requirements of its infrastructure asset ventures
and transform itself purely in to an infrastructure development company.
Following the amalgamation of IVR Strategic Resources & Services Limited
and IVRCL Water Infrastructures Limited, the net worth of IVRCL A & H
currently stands at about Rs 2,300 crore represented mainly by investments
in BOT assets, which were formerly owned by its parent company IVRCL
Infrastructures & Projects Limited. The higher net worth was expected to
enable the company to bid for larges projects. The company currently holds
assets valued over Rs 75 billion and is targeting for an exponential growth
three years down the line.
National Highways:
In the BOT business, the Company currently has 6 national highway projects
of which three are operational. Currently a total length of around 150 km
of 4 lane highway is under the Company fold as a BOT operator wherein
tolling has commenced. Three BOT projects are under development and in one
project the Company is the L1 bidder. The Company's portfolio of BOT
projects are as follows:
* Salem Tollways Limited
* Kumarapalayam Tollways Limited
* Jalandhar Amritsar Tollways Limited
* SPB Developers Private Limited
* IVRCL Indore Gujarat Tollways Limited
* Sion Panvel Tollways Private Limited Chennai Desal
The prestigious Chennai Sea Water Desalination Project of 100 MLD Capacity
being executed for Chennai Metro on a DBOOT basis is the first of its kind
concession projects in the country and stands out as one of the most
distinguished assets of IVRCL A & H. While work on this project is
completed and performance t rials are underway. We expect this project to go
on steam in June 2010. The Company recognizes the immense potential of
desalination as a major water source for the country and will spearhead the
desalination drive to bring water to people and industry in the coastal
states as a major contributor to the demand for desalinated water.
Gas & Oil Storage:
IVRCL Assets & Holdings Limited has taken a 37.5 per cent stake in the
concession project for development of crude/product tankages facilities at
Paradip Refinery Project, Paradip, Orissa of Indian Oil Corporation Limited
(IOC) on Build, Own, Operate and Transfer (BOOT) basis and will be the
joint venture partner in the special purpose vehicle, IOT Utkal Energy
Services Ltd., which has been set up for the implementation of this
project. The project involves Installation, Operation & Maintenance of
approx. 1.4 million kilolitres of tankages for crude oil, petroleum
products. LPG and sulphur and associated facilities at Paradip Refinery
Project in Orissa which is expected to go onstream during 2012. The
concession period will be 15 years after commissioning. The total project
cost is estimated at around Rs. 3000 Crores.
Ports:
The Company as a consortium has been pre-qualified for building two berths
at Visakhapatnam port on a BOT basis and proposes to bid for these
projects. Plans are being drawn up to take up similar projects including
the construction and operation of a full fledged port on long term
concession basis.
Power Transmission - The Company is looking towards taking up power distribution and transmission on concession basis for Power Finance Corporation and similar organizations.Most of the B.O.T projects are going to come in operation . so earnings are expected from next year
PUBLIC ISSUE PRICE -450 RS. (LOW DEBIT COMPANY 450cr)FOR A EQUITY OF 197 CR.
HOLD FOR NEXT SIX MONTHS .EXPECTING PRICE TARGET 100Rs.