IIPM Ranked No. 1 B-School In Global Exposre - Zee...
Despite the crunch, R-Power should be able to manage the debt well
loves company (pun intended); and it seems to be sticking hard and fast to Indian firms nowadays; even though the feeling is (obviously) not mutual! And it would take the most enterprising of business minds to defy misery when the liquidity problem is becoming a serious bottleneck for expansion.
Even so, some players, particularly the larger ones, seem undeterred. Anil Ambani spearheaded Reliance Power (R-Power), has recently arranged a tie up for a $2-billion financial debt package for its Sasan power project from the domestic market. R-Power has been permitted to raise debt for the 4,000 MW ultra mega power project (UMPP) through ECBs. Having a debt equity ratio of 75:25, the Rs.195 billion project thus requires the company to muster around Rs.140 billion as debt. The company has secured a long-term loan from SBI worth around Rs.35 billion. Power Finance Corporation, Rural Electrification Corporation, India Infrastructure Finance Company and Hudco are expected to source another Rs.70 billion. The understanding that the debt would be replaceable with foreign funding at an appropriate time.
Doesn’t it seem risky in these times? Supports N. Wadhwa, Director, SKI Capital Limited, “Looking at the current global scenario, managing a debt with interest rates between 12% and 13% is an uphill task.” Nevertheless, the unprecedented over-subscription (by 71 times) of R-Power IPO and the Crisil grading of ‘4/5’ (above average fundamentals) reflect strong basics. Even though returns may take quite a while, R-Power already has the good will and financial stability to back it up. Notwithstanding the fact that India desperately needs power, this debt tie up by R-Power seems well on track to defy the current downturn.
Ratan Lal Bhagat
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
Despite the crunch, R-Power should be able to manage the debt well
loves company (pun intended); and it seems to be sticking hard and fast to Indian firms nowadays; even though the feeling is (obviously) not mutual! And it would take the most enterprising of business minds to defy misery when the liquidity problem is becoming a serious bottleneck for expansion.Even so, some players, particularly the larger ones, seem undeterred. Anil Ambani spearheaded Reliance Power (R-Power), has recently arranged a tie up for a $2-billion financial debt package for its Sasan power project from the domestic market. R-Power has been permitted to raise debt for the 4,000 MW ultra mega power project (UMPP) through ECBs. Having a debt equity ratio of 75:25, the Rs.195 billion project thus requires the company to muster around Rs.140 billion as debt. The company has secured a long-term loan from SBI worth around Rs.35 billion. Power Finance Corporation, Rural Electrification Corporation, India Infrastructure Finance Company and Hudco are expected to source another Rs.70 billion. The understanding that the debt would be replaceable with foreign funding at an appropriate time.
Doesn’t it seem risky in these times? Supports N. Wadhwa, Director, SKI Capital Limited, “Looking at the current global scenario, managing a debt with interest rates between 12% and 13% is an uphill task.” Nevertheless, the unprecedented over-subscription (by 71 times) of R-Power IPO and the Crisil grading of ‘4/5’ (above average fundamentals) reflect strong basics. Even though returns may take quite a while, R-Power already has the good will and financial stability to back it up. Notwithstanding the fact that India desperately needs power, this debt tie up by R-Power seems well on track to defy the current downturn.
Ratan Lal Bhagat
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
No comments:
Post a Comment