Apparently a new Capital raising exercise that is due for the Krishna Giri – Hyderabad highway project is being confused with the companny trying to sell sa stake in its Roads projects.
The 20 odd road projects for the company have quite a few revenue bearing projects now but the new projects need to be funded independently and run as SPVs so whatever that plan was, it won;t be for financing of projects while the road based portfolio for both Reliance Infra and GMR Infra is increasingly being watch for extra debt overhang from the road projects as the situation has not been resolved for both infracos while they continue bagging new projects in fresh SPVs
Today’s TV18 interview with the CFO followed last week’s review where Subba Rao had iterated how only limited help could be provided by the government in the Power sector. It has added INR 75 bln or $1.5 bln worth of projects in the last three – six months
The company’s attempts at innovative structures to sell stakes to PE without diluting equity seem to have not borne fruit leadin git to more QIPS to manage the cost of funding across road power and airport projects
- India Infrastructure: Indian Banking and Infra / construction NPAs (awardz.wordpress.com)
- This week’s investment banking buzz and inspiration | Advantage Dealbook (advantages.us)
- India Road-Building Hits Record as Builders Pay to Work: Freight (businessweek.com)