Infra.india Regulatory News (IIP)

17 Aug 2009 07:00



Date: 17 August 2009

On behalf of: Infrastructure India plc ("Infrastructure India" or "the Company")

Embargoed until: 0700hrs

Infrastructure India plc 

Interim Management Statement

Infrastructure India plc ("Infrastructure India" or "the Company"), the investment company focusing on Indian infrastructure assets, today releases an Interim Management Statement in accordance with FSA Disclosure and Transparency Rule 4.3. This statement covers the period from 1 April 2009 to 16 August 2009. 

The Company has an investment of £13.2 million (Rs 1.1 billion) in Shree Maheshwar Hydel Power Corporation Limited, which was specifically established to own and develop a 400MW hydroelectric power project situated in Maheshwar, in the southwestern region of Madhya Pradesh in India. This project is expected to be one of the largest privately owned hydroelectric schemes to be commissioned in India within the next two years. Power generating operations are anticipated to commence in the first quarter of 2010 and anticipated achievement of full operations remains in line with expectations at the time of the acquisition.

Infrastructure India also has an investment of £11.3 million (Rs 960m) in a toll road in Central India, representing a 26% shareholding in the project. The single 125 km four-lane divided carriageway toll road is part of the local State Government sponsored road upgrade programme. Construction works are currently ahead of schedule and tolling operations are anticipated to commence around April 2010.

Together, these two investments account for approximately £24.5 million of deployed capital, representing a substantial proportion of the net proceeds raised at the time of the IPO. The Company had cash balances of £4.3 million as at 14 August 2009.

The Company is pleased with the progress of its current investments. Infrastructure India continues to explore and evaluate all appropriate funding options, as there continues to be a strong, and developing, investment potential in the Indian infrastructure sector and the Board remains convinced of the economic case for investing in India. 

Further to the announcement on 16 March 2009 relating to the proposed acquisition of the Company's Investment Advisor, Bloomsbury Asset Management Advisors, the Directors continue to keep the proposal under review and will update the Company's shareholders in due course on progress to resolve the matter. 

Despite global economic conditions, the Company and its Investment Advisor remain of the belief that Indian infrastructure continues to offer stable and long term growth. The Company remains focused on investing in assets which it believes have the potential to generate substantial capital growth and income - particularly in the energy and transport sectors.

Infrastructure India will issue its interim results for the period to 30th September 2009 in November 2009. 

-Ends- 

Enquiries:

This statement aims to provide an indication of material events that have taken place during the period to the date of publication of this statement. The contents of this statement reflect the Board's current view. They are subject to a number of risks and uncertainties and actual outcomes and results could change. Factors which could cause or contribute to such differences include, but are not limited to, general economic and market conditions and specific factors affecting the financial prospects or performance of individual investments within Infrastructure India's portfolio.