Institutional Equities - Online Share Trading
Institutional Equities - Online Share Trading
Institutional Equities - Online Share Trading
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<strong>Institutional</strong> <strong>Equities</strong><br />
Exhibit 11: HCC Concessions structure<br />
Source: Company<br />
Key highlights of projects<br />
Exhibit 12: HCC Infrastructure portfolio<br />
Nirmal annuity project: The project is for four-laning of 33km road on the Hyderabad-Nagpur route at a cost<br />
of Rs3.15bn. The project got operational 100 days prior to schedule in July 2009. The project is based on<br />
annuity of Rs238mn (semi- annual) with a concession period of 20 years and the debt is financed at fixed rate<br />
of 9.38% for 17 years.<br />
Badarpur-Faridabad elevated expressway: The project is to develop 4.4 km elevated highway connecting<br />
Delhi and Haryana at a cost of Rs5.72bn and equity investment of Rs1.72bn.The project, completed in<br />
November 2010, reduced travel time by over 45 minutes.<br />
Dhule-Palesner highway: The company got this project worth Rs14.2bn in a consortium with Sadbhav<br />
Engineering. The project involves four-laning of the road from the Maharashtra-Madhya Pradesh border to<br />
Dhule, connecting Mumbai and Agra, which will largely cater to industrial traffic. The project, which is around<br />
75% complete, is expected to be completed by 3QFY12 (six months ahead of schedule).<br />
West-Bengal project: The project scope involves four-laning of 256km road from Baharampore to Dalkhola<br />
at a cost of Rs32.3bn in three concessions. The project is on track and is expected to be completed by<br />
3QFY13.<br />
HCC's Infrastructure<br />
Equity<br />
Debt<br />
Concession<br />
Place<br />
Grant<br />
COD<br />
Status<br />
Portfolio<br />
Km<br />
(Rsmn)<br />
(Rsmn)<br />
period<br />
Nirmal BOT(Annuity) 33 Andhra Pradesh (NH-7) 630 2,520 Jul-09 20 Operational<br />
Badarpur- Faridabad 4.4 Delhi 1,720 4,000 Nov-10 20 Operational<br />
Dhule-Palesner/MP order 89 MP border 3,550 10,650 Jun-12 18 Under construction<br />
Baharampore-Farakka 103 West Bengal 2,146 3,934 5,612 Sep-12 25 Under construction<br />
Farakka-Raiganj 103 West Bengal 2,471 4,145 7,168 Sep-12 30 Under construction<br />
Raiganj-Dalkhola 50 West Bengal 1,372 2,255 3,216 Sep-12 30 Under construction<br />
Total 382.4 - 11,889 - 33,166 - - -<br />
Source: Company, Nirmal Bang <strong>Institutional</strong> <strong>Equities</strong> Research<br />
Lavasa - Key value driver<br />
HCC holds a 65% stake in Lavasa Corporation (a township of over 12,500 acres under development in<br />
Maharashtra) with an equity investment of Rs4.7bn, while the other major shareholders are Avantha group<br />
(15%) and Venkateshwara Hatcheries (12.5%). Lavasa Corporation has planned to develop the project in four<br />
stages. In the first phase, the company is developing 3,200 acres at Dasve and Mugaon. The first town under<br />
the project Dasve was supposed to be operational by FY11. The company had filed the DRHP (draft red<br />
herring prospectus) for its IPO on 14 September 2010 to raise around Rs20bn. On 25 November 2010, the<br />
environment ministry served a show-cause notice to Lavasa seeking clarification on whether it has violated<br />
environmental regulations along with directions to stop construction work. All this has delayed the<br />
development process and fund raising plans through the IPO.<br />
72 HCC