Saturday, April 2, 2011

SREI old call......

I have been recomending this stock since 2008.Lateron RJ took stake in Mar 2010 at 65 something like 12,50,000 shares.
I am gald to see RJ taking stake here which vindicates my call on Srei on fundamental side.
I am today putting all the information gathered by me since I started recomending it here, i.e. 2008.One can see how much I go deeper and try to find whatever I can get for a Co which I use to recomend it here for my readers.
I want this type of diggin from my readers.I have no direct access to the Srei Management .What I have gathered is solely from internet.I keep on writing here that try to explore internet.It is a huge ocean and one can always find something which someone else may not be knowing.

Here are my Infos:

1) SREI To Pick Up Stake in Bhaskar Silicon

Thursday, 21 January 2010 06:07 Jarna Gandhi Energy & Utilities

Srei Infrastructure Finance plans to pick up a stake between 15% and 30% in Bhaskar Silicon, a SPV of Singapore-based Environ Energy Corp.

BHaskar Silicon is putting up the world's first integrated Solar Power Plan and India's first polysilicon- Solar Plan in Haldia with a capital outlay of Rs 5000cr. The polysilicon andwafer-processing facility will start operations in 2011. The unit will make 2,500 tonnes of polysilicon per annum capable of generating 250 MW of solar power.

SREI plans to infuse both equity and debt into the company; however the exact details are undisclosed.Earlier, the company had announced that nearly Rs 1,500cr would come as equity while the rest would come as debt.

Earlier, the ¤375 million Centrotherm Photovoltaics,  providers of technology and services for the photovoltaics industry, and Perseus LLC, merchant bank and PE fund had agreed to pick up significant stakes in the company. Perseus manages seven investment funds with capital commitments totalling nearly $2 billion and co-manages a $449mn fund.

In Novemeber 2009, India power corp- a JV between SREI and Bhaskar Silicon had acquired a majority controlling stake of 57.17% in Dishergarh Power Supply Corp (DPSC) at Rs 710 per share in an all cash deal.

2. Srei to pick up 30% in Bhaskar Solar for Rs 5,000 cr

Srei Infrastructure Finance is close to picking up between 15 and 30 per cent

stakes in Bhaskar Silicon, which is putting up the world's first and the largest integrated Solar Power Plant and India's first Polysilicon-Solar Plant in Haldia, West Bengal with a capital outlay of Rs 5000 crore.

Earlier, the ¤375 million Centrotherm Photovoltaics, one of the world’s leading providers of technology and services for the photovoltaics industry, and Perseus LLC, the Washington-headquartered merchant bank and private equity fund management company (which manages seven investment funds with capital commitments totalling nearly $2 billion and co-manages a $449 million fund), had agreed to pick up significant stakes in the company.

Confirming the developments, Srei’s vice-chairman and managing director Hemant Kanoria told Financial Chronicle, “Yes we are close to picking up substantial stakes in Bhaskar Silicon, with power being one of the thrust areas for the group. We may take up to 30 per cent stakes but under no circumstances it will be less than 15 per cent.”

Refusing to divulge the exact value of their equity infusion, Kanoria said, “We will have both equity and debt exposures into the company.”

Earlier, the company had announced that nearly Rs 1,500 crore would come as equity while the rest would come as debt.

It may be mentioned that Srei Infrastructure Finance and Bhaskar Silicon had already participated in a consortium called India Power Corporation (IPCL) to pick up a controlling 57.17 per cent stake in power utility DPSC.

Srei’s power arm already runs two 35mw wind power units in Karnataka and Gujrat and waiting for the “right opportune moment to grow-organically and inorganically”, said Kanoria. “We have sufficient reserves and sufficient line of credit to finance our expansions on the power front. But we are not in a hurry. We will grow cautiously, conservatively and yet aggressively,” added Kanoria.

SREI Infra can bank on Quippo : Feb 17th 2010

EPS Dilution Likely In Short Term, But Both Will Gain From Synergies In Long Run


KOLKATA-BASED SREI Infrastructure Finance, a non-banking finance company (NBFC) that is into financing of infrastructure-related segments, has announced an amalgamation with Quippo Infrastructure.
   The company’s main lines of business are equipment finance, project finance & advisory. This is where the amalgamation part comes into play as Quippo Infrastructure is an equipment bank. For instance, Quippo has a partnership with Tata Teleservices, featuring the largest independent telecom infrastructure in India. Apart from it, Quippo has oil & gas drilling equipment and construction equipment as well.
   Now that Quippo will be a part of SREI, the company will have the advantage of synergies. For instance, if a contractor approaches the company, Srei has the option to rent, lease or sell the equipment, which no other finance company in India is in a position to do. There are bound to be synergies in the long run. However, in the short term, the amalgamation will result in dilution of earnings per share, one reason why the stock took a 25% hammering during the last one month, while the Nifty lost just 8%.
   Infrastructure equipment financing comprises two-thirds of the assets under management, with the remaining one-third under project financing. There are synergies between these lines of business as well. For instance, the contractors to whom Srei provides finance under equipment financing can get business from the project it finances. Therefore, the various business segments of the company such as project finance, advisory and equipment finance are inter-related.
   On the liability side, loans from domestic banks and financial institutions constituted more than 50% of the total funds during the previous fiscal. Close to 13% of its funds were raised from the bond market. On the assets side, the company has a good asset quality, which is evident from its low non-performing assets (NPAs) or bad loans.
   At a consolidated level, NPAs are minuscule. In the equipment financing business, NPAs were less than 1% of net advances at the end of December 2009. The company reported an net interest margin or NIM of 5.1% in the quarter ended December 2009. At the current level, its NIM is one of the highest in the NBFC segment. However, its stock trades at a discount to other players in the NBFC industry. At current levels, it is trading at a price to book value (P/BV) ratio of 1.1, while IDFC, which is also an infrastructure finance company, is trading at a P/BV of 3.2. Clearly, SREI Infrastructure Finance is trading at a huge discount to its fundamentals.

WB govt, SREI Infrastructure Finance ink MoU for LRT

KOLKATA: The West Bengal government and SREI Infrastructure Finance on Wednesday inked a memorandum of understanding (MoU) to set up the country's first light rail transit (LRT) system. A special purpose vehicle, christened Kolkata Mass Rapid Transit Pvt Ltd, has been formed to implement the proposed Rs 6,000 crore project. 

To be executed in two phases, the project will be implemented by a consortium led by SREI Infrastructure and will include technology partner Amex International of Czech Republic and a state government undertaking, West Bengal Transport Infrastructure Development. 
"I have urged those executing the project to prepare a detailed project report (DPR) by this fiscal and begin construction latest by next year. We will take about four-to-five years to complete the project from the day we commence construction," said West Bengal chief minister Buddhadeb Bhattacharjee, addressing mediapersons during the MoU signing ceremony held in Kolkata on Wednesday. 
Incidentally, the project will comprise two corridors -- Joka-Esplanade and Esplanade-Barrackpore links. The air conditioned LRT will connect the northern suburbs with the southern fringes of the city through the central business district and cover some 40 kms in just 90 minutes. 
It will touch 37 stations including Taratala, Khidderpore, AJC Bose Road, Park Street, Esplanade, Sealdah, Shyambazar, Dunlop, Khardha, Titagarh and Barrackpore. 
For starters, the train is projected to carry some 1.2 lakh passengers per month and subsequently, 4.8 lakh passengers per month. 

Emphasising the need for such a system, SREI Infrastructure Finance chairman & managing director Hemant Kanoria said, "Road space in Kolkata has shrunk substantially rendering navigability of vehicles impossible. More so, since the number of vehicles have increased manifold over the years. This coupled with the regular inflow of people from districts is making commuting chaotic." 

Given the anticipated vehicular growth in the future, and increasingly lower availability of road space and time constraints, construction of flyovers and elevated tracks would be the ideal solution, he pointed out. 

"The proposed light rail transit system," Mr Bhattacharjee added, "will meet the East-West Metro at Sealdah to help office goers commuting from one end of the city to the other. Implementation of all three — the light rail transit system, the East-West Metro and the ring road to be built around Kolkata — collectively will solve the city's transport problem in the near future."

1)Stake in DPSC of 57% which SREI took from LIC and DII is a huge positive for SREI.
DPSC is listed on NSE stock exchange whose 52 week high is Rs 3534 and 52 week low is Rs 576 and CMP is Rs.1915.Just imagine the valuation of DPSC?
2)Stake in Bhaskar Solar is another huge positive
3)Merging Quippo is another big positive.
4)WB govt, SREI Infrastructure Finance ink MoU for LRT is another huge huge positive.....
What I am seeing here in SREI is first we saw the merger of Quippo then we will see the demerger of these Co as well as a seperate entity and shares will be given to SREI stake holders.
This is my thinking.I may prove wrong but that is what I am seeing and hence SREI Infra share holders is going gain immensely  from SREI stock as I feel all these demerger entities will be lateron get listed and shareholders will gain from the prices of listing as well and price appreciation lateron.
Srei Infra is the stock of the decade if everything goes well ........Due Diligence is a must before buying anything .......


  1. belated birthday wishes rajeev bhai,hope u have a wonderful year ahead.

  2. Your work is appreciable Rajeev. Congrats for the same.

  3. Hi Rajeev,
    When I check dec 2010 SHP, I Found JHUNJHUNWALA REKHA RAKESH holding to 1.08 % but when i checked it for March 2011 pattern her name is not there.


  4. Bipin,
    It looks like you do not look at the things properly.
    If you have observed for over 1% stake now the quantity of shares is over 50 lacs shares...

    8 Belgian Investment Company for Developing Countries 5,560,658 1.11

    You can see here that Belgain Invst has 1.11% holding and the shares they hold is 55,60,658 shares means 55 lacs 60 thousand shares and Rakesh is holding 12 lacs 50 thousnad shares and so naturally his holding is now below 1% and that is why his name is not coming up in SHP.
    With Quippo merged the eq has gone up...

  5. Thank you Rajeev . U r genius. Till date i have made 90-100 % profit in IFB , Loyal Text, and in Srei Infra along with u r recent recommendation which went from 380 to 464 today. Once again thank u very much. any view on Mirza international ?

  6. Srei Infra Finance lines up global expansion plans

    April 06, 2011

    Srei Infrastructure Finance Ltd, one of the country’s few pure-play private sector infrastructure finance companies, is going global.

    The Kolkata-based financing company, which recently received the tag of an infrastructure finance company from the Reserve Bank of India, is planning to set up operations at multiple overseas locations and is actively eyeing geographies like the United Arab Emirates, Africa and several countries in Southeast Asia, its chairman and managing director Hemant Kanoria told DNA.

    Srei’s international presence so far has been in the form of a joint venture outfit, Zao Srei Leasing, which has been doing moderate business in Russia.

    “We were looking at going international in a much bigger way by venturing into other geographies. We have been thinking about this for quite some time but then the global crisis of 2008 happened and we decide to wait till things stabilised. Now that there is stability, we are reviving our plans. This year we will start exploring and evaluating these places by sending our team,” Kanoria said.

    Srei’s overseas experience has not been quite satisfactory with its Russian business performing poorly but things are looking up now.

    “It’s now about four years that we are in Russia. It started with a lot of potential in 2007. But during the crisis of 2008 Russia didn’t know how to react so the economy slowed down and there was negative growth, as their economy didn’t have the resilience, which we see here. Now in the last 6-8 months it has started picking up again,” Kanoria said.

    Srei’s domestic operations witnessed a robust growth with loans book expanding 60 per cent in 2010-11 to Rs 14,400 crore from 2009-10’s level of Rs 9,000 crore.

  7. Volvo and Srei BNP Paribas form India alliance, JV on cards

    Global vehicle manufacturer Volvo and infrastructure equipment non-banking financial company Srei BNP Paribas today announced they will join hands to launch a private label retail financing programme in India, which is expected to lead to a joint venture in three years.

    The programme, branded as 'Volvo Financial Services', would strengthen the Volvo Group's ability to provide full service financial solutions to Volvo Group customers in India and customers of its joint venture with Eicher Group, VE Commercial Vehicles, Volvo officials said at a news conference.

    With the launch of the Volvo Financial Services offering, the Volvo Group said it would accelerate its business growth in India across all products by packaging its product offerings with financing through this alliance.

    By engaging the two companies at the sales, marketing and operational levels, the alliance would allow both companies to address new growth opportunities by developing co-branded financing programmes and services for customers of the Volvo Group and Srei BNP Paribas, Volvo officials said.

    "The Volvo Group and its distributors will benefit from leveraging Srei's expertise and financial capabilities in credit underwriting, funding and sales and marketing effectiveness through a private label programme under the Volvo Financial Services name," Volvo Financial Services Asia/Pacific President John Rakocy said.

    Srei BNP Paribas CEO D K Vyas said the three-year, mutually binding alliance would cover all Volvo products. "The alliance actually is laying a roadmap for a joint venture maybe three years down the line," he said

  8. Hi Rajeev,
    I would like to suggest something on your blog which may benefit other investors including you.
    There are many news or other information which are of importance regarding the companies which we track.

    If you could provide one link in your blog where investors could post recent developments in their companies, then it would be beneficial to you as well as others who follow this blog.

    The reason for other link is if we post the relative news in the company thread, then the thread could remain unvisited as users are not checking all the threads regularly. They are checking only the recent threads.

    Just a suggestion. Its your decision.
    I am posting one news regarding SREI as the next comment in this thread.

  9. Srei Infrastructure Finance Ltd, one of the few pure-play private sector infrastructure finance companies in the country, is planning to re-enter the port sector this fiscal to grab opportunities in upgradation of existingports.

    It would also begin oil and gas exploration in a block that the group, as part of a consortium, had won in the Nelp VII round in 2008.

    “We have recently exited our investments in the port sector but this year we might invest in this sector again as lots of investment opportunities are likely to show up soon,” vice-chairman Sunil Kanoria told DNA.

    Srei would be launching its much delayed overseas infrastructure fund for which road shows would start in July. “We would be visiting cities in the US, Europe also in the Middle East with our road shows and plan to mop up between $500 million and $1 billion depending on response of the investors,” Hemant

    Within the country, Srei would also explore issuing infrastructure bonds but only in the later part of the year.

    “Infra bonds are not attractive to investors from the tax savings angle and we may look at this option but only after September,” Hemant said.

    Last year Srei sold its stake in two under-construction ports — the Subarnarekha project in Orissa, being developed by Creative Port Development Ltd, and the Machilipatnam deep sea port in Andhra Pradesh, being built by a consortium led by erstwhile Maytas Infra

    “Last week we were there with government officials who indicated us that the government is planning to invest about `12,000 crore in existing ports to have more berths and the tendering would happen this year, in which they want investment of private sector,” managing director Hemant Kanoria said.

    Srei would also start this year oil exploration at the Cambay onshore block, CB-ONN-2005/11, in which the group owns 60% stake — 40% through Quippo Oil & Gas infrastructure Ltd and 20% through parent Srei Infrastructure Finance Ltd.

    The balance is held by foreign partners like Quest Petroleum, Vectra Investment, and Primera Energy Resources.

    “As per the development plan, the investment in the block would be about $15 million. We plan to start work as soon as we get the necessary approvals from the Gujarat government which is likely anytime this year,” Sunil said.

    The much talked about initial public offering of Viom Networks, the joint venture between Tata Teleservices Ltd and the Kanoria family, may not happen this year considering current market conditions and slackness in the mobile telephony sector shaken by the 2G scam even as the mobile tower company actively looks for opportunities beyond borders in geographies such as Africa, Vietnam, Saudi Arabia and the Middle East.

    Viom Networks, previously known as Quippo-WTTIL, was formed out of demerger of Tata Teleservices’ mobile tower infrastructure and currently has strength of 38,459 towers, making it India’s largest independent passive telecom infrastructure provider.

    “The telecom tower infrastructure in India has stopped growing particularly in the rural areas even thought service quality is suffering. We see things happening in this sector including tower deals but not before 2013. We would be ready with the IPO, may be within a year and a year-and-a-half,” Sunil, who is also a director on the board of Viom, said.

    Source - DNA-India