LONDON (Alliance News) - Infrastructure India PLC Thursday said it net asset value decreased in the full year, along with a slight rise in the value of its investments, though it expressed some optimism on the back of an improvement in the Indian economy.
The infrastructure investment fund said its net asset value was down in the year to March 31 to GBP212.3 million. That compares to GBP216.7 million at end September 2013 and GBP267.3 million in March 2013. Its net asset value per share was GBP0.62 in March 2014, down from GBP0.63 in September 2013 and GBP0.78 in March 2013.
The value of its investments was GBP221.4 million at March 31, 2014, compared to GBP221.0 million in September 2013 and GBP266.5 million in March 2013.
In the year, Infrastructure India said Vikram Logistic suffered delays in the disbursement of approved debt funding, resulting in talks taking place with its lending consortia to restructure existing loans in exchange for new equity.
In May, Infrastructure India agreed a new financing deal with Cedar Valley Financial Ltd, making up to USD8.1 million available in the form of an unsecured loan facility, with the funds used to invest in Vikram Logistic and provide the company with working capital.
In August, the company then entered into a subscription agreement with Barnet Holdings Ltd, the affiliate of its majority indirect shareholders, GGIC Ltd, to underpin a GBP102 million share placing.
Elsewhere, Infrastructure India said the portfolio valuation of Shree Maheshwar Hydel Power Corp Ltd decreased on the back of uncertainty around timing of developments at the company.
It said its road, wind and small hydro assets performed broadly in line with expectations in the fiscal year.
"Sentiment and activity in the Indian infrastructure sector appears to have shifted post-election, and while it is early days for the new Indian government we are hopeful that the current momentum is more than transitory. In the medium term, this stronger political and regulatory framework is promising for progress within our portfolio and its eventual monetisation," said Sonny Lulla, Chief Executive of Infrastructure India.
Infrastructure India shares were down 2.1% to 11.50 pence on Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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