Member Info for SchiffJnr

I questioned why Greenko want to replace bank debt with what seems like expensive debt - 5% pa plus 6% at maturity. I'm not sure what standard chartered were charging them? But surely refinancing with a bank would have been cheaper? And ofcourse any conversion to equity means dilution. I'm guessing that's way the share price has gone down.

I have a small amount of holdings in the company and I agree with what Vigneron is saying. This is a great business which is growing very well and operates in a market that is crying out for energy. The business is well funded and last bond placement went well. If Modi can get India to grow at a faster rate, and GKO can continue to develop more power output, I can see this being a good dividend player in the future.

Totally agree with your comments. Looks like the party is over. The hangover isn't going to be nice!

... is trending up nicely :-)

Hi NavyBloke, a reliable trading range is a great thing to find, particularly when the underlying company is a good one (such as Rexam). Thanks for the heads up, I think I'll look to get in over the next few days.

Many thanks MaoWombat, agreed, anything under a fiver looks like good value.

I've admired this share for awhile and I'm looking for a decent entrance point. Do you have anything thoughts on how low it might go?

Does anyone know who the bond holders are? If the debt is dollarised (ie in Dollars not Rupees) than 8 is quite high, and we can take less comfort from the issue going well. With all the QE there's lots of money around looking for a decent yield, and 8% on dollar debt is a good rate.

Investors chronicle target price of 225p is nice! Invetec is Greenko's appointed broker are targetting 275p.

Very good to see it rising! Not sure what's driving it, though it's possible a positive reaction to the bond issue / refinance, which, although at a rate of 8%, isn't bad for India; The Reserve Bank of India (RBI) raised the benchmark repo rate - the amount at which it charges to lend to commercial banks - to 8% from 7.75% in Jan 14.

...in the Telegraph this week. Admittedly, the Telegraph aren't the best of tipsters, but this company continues to get some good press coverage. I decided to top up alittle today. Let's hope the Modi bull market continues for a long time.

Hi all. Yes, I would expect them to tap the bond market borrowing rates in USD or EURO are cheaper at the moment and its makes more sense then diluting. It's also cheap to hedge against a weaking ruppee. In terms of the ruppe, it should hopefully strengthen as Modi's reforms start, and foreign capital starts to flow in. In terms of debt servicablitly, the borrowing will be to fund future projects. Full Year trading to March 2014 should be published in about a months time. Hopefully it will be good!

The company has a good website with lots of information. The company's annual reports are alos posted on there.

Good news about the latest wind farm.. Interesting to note that total power generation for GKO has almost doubled since April 2013. On a more macro note, it was reported on Bloomberg today that the highly rated head of India's central bank has hinted that he will ease monetary policy if Modi can get inflation under control. As with everything in India, the execution is difficult. But, at present, GKP's SP doesn't reflect anywhere near the amount of investment the business has pit into increasing its power generation capacity in the last 18 months.

Yes i think that the market realised that the election and potential liberalisation of the energy market in india won't harm GKO. Those of you that have followed Essar Energy will have seen the Modi is already getting things moving so thst Essar can get going with their Mahan power station. Essar is one of india's largest energy companies, and doubtlessly the large players will benefit from Modi encouraging their expansion. As i've previously postulated, i believe the slump in the sp for GKO was driven out of fear that this action wouls adversely effect GKO by increasing competittion. I reality, india has a massive and growing population and a massive energy shortage. If Modi's policies increase economic activity, the demand for energy will grow even more. Demand outstrips supply by a huge margin, so even if GKO's larger competitors get their act together, there's still plenty of room for GKO. The recovering sp over the last week is possibly a realisation of this.

Total scumbags. I hope they get their karma!

Yes, they are making gentle steps to open up the Indian stock market to allow foreigners to buy shares. This should be a good thing for the market. I don't think it should have too much effect on GKO. One possibility is that, currently, foreign investors can only get exposure to Indian companies by buying into a fund listed in India or by buying shares in an Indian company listed in London such as GKO. As the market opens, investors have more opportunities, so may become less interested in GKO, but I hope that won't be the case. Personally I have some concerns about governance in the Indian corporate world, and hence I'm cautious. I do however trust GKO. Let's not forget Singapore's sovereign wealth find invested £100m back in 2013. They wouldn't have done that without doing alot of due diligence first. I'm pleased to see the SP is raising again, so it looks like the market just got a bit spooked (perhaps for the reasons that I mentioned in a previous post in this chain). Ultimately, the fundamentals on this one look good, and as such, the fall in the SP directly after the Indian elections didn't take long to correct. My only wish is that I'd taken the opportunity to increase my holding.

I'm only guessing, but I would say the market thinks the new Indian government will lift some of the red tape around some of the larger energy co's such as Essar. This will mean more competition from cheaper non green companies who use fossil fuel power stations.

Thanks for posting the article EJL7. I hold some Greenko shares as well. I agree, its strange that the shares have been trending downwards whilst the Sensex is hitting new highs. At least with a cheaper provides a good opportunity to buy some more. I invested in this company about this time last year when the price was about 125p. It was good watching go above 180p. If it falls back down to the 130's I'll be very tempted to buy some more. Good luck to you as well.

Will be interesting to see if the election results have any impact on the share price. Modi will want to turn the economy round and cut some of the red tape.