Another quick doodle on Power Infrastructure | NTPC, REC
Wednesday, January 20, 2010
GOI plans a French Auction from Feb 3-5 for the NTPC IPO. The FRench Auction will enable best price discovery but trading will be halted for the period because of government concerns about quality of FIIs and QIBs in the country. The Market Price ruling at 240, means the FPO could even take the bids higher, but unlikely as a common cut off is in place per the rules of the French auction to be announced on Saturday Feb 6. Retail Investors get a discount of 5% as last month in Jindal Energy. NTPC is one of the heaviest weighted Sensex scrips. In a separate development GMR got thru to investors for its Power unit's 15% stake. Again it looks as if we have short-sold the plot for less than 10000 Crs while disallowing retail investors frm participating. The volumes continue to be dry.
NTPC has a commissioned capacity of 30K MW . Dabhol may also get a 2000MW unit from NTPC in the current premises. NTPC will also be selling 10% of its Power in Market Auctions/Contracts (Merchant Power) where prevailing prices go as much as Rs 17 per unit for distribution companies and Corporates for their requirements. This will increase NTPC profits by approx 5 million units of Power sold at a Profit of Rs 8-10 or Rs. 5 Crores
Also two Transcos have been approved for bidding by REC for Kpatnam run by AP Transco and Tiliana. Companies like Jindal had also planned Transmission projects over Rs 600 Crores for the Bellary plant. REC currently earns a 300 bp spread on its loans with lending capped at an easy 11.5%. Though there is no legal limit on its lending rates.. REC also manages the bidding process on behalf of Power Transcos and Distcos ( state-owned) K'patnam plant for example would be part of AP Transco's 800 cr 2010 disbursal. In AP over 5 lakh villages have been electrified. (REC Interviews on Bloomberg UTV, ETNOW with NTPC FPO, Other research includes sources at our India http://zyaada.info archives and the India Brand Equity Foundation)
[tag NTPC, india, India infrastructure, Infrastructure, Power, Power Infrastructure, Power, Divestment, 2010]
[category india, India infrastructure, Infrastructure, Power, Power Infrastructure]
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