Infrastructure India has published interim results for the six months ended on 30 September 2014. Over this period its net asset value fell from 62p to 43p – a fall of 31%. This was largely the consequence of a dilutive issue of shares at a price less than asset value in August. Unfortunately all these shares were issued to one buyer, one connected to the manager, and the deal created a substantial transfer of value from the other shareholders to this new shareholder.
One asset that did appreciate in value was Distribution Logistics Infrastructure Private Limited (“DLI”), formerly known as Vikram Logistic and Maritime Services Private Limited. In July DLI commenced domestic operations at its Nagpur terminal facility. Infrastructure India invested £24.4m in DLI during the period under review to fund construction and provide some working capital.
The negatives in the portfolio centre around their hydro-electric power investments. A late Monsoon cut power output generally but one scheme was damaged by heavy rain while their original scheme, Shree Maheshwar Hydel Power Corporation Limited, is still no nearer being completed.
IIP : Infrastructure India – dilutive issue wipes out value