TERM PAER ON FINANCIAL MANAGEMENT COMPANY:-RELIANCE INFRASTRUCTURE

SUBMITTED TO MS.ANUSHITAL SINHA PREPARED BY:SHILPI DAW ROLL NO-RR1903B45
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REGD. NO-10903434

ACKNOWLEDGEMENT
I feel deep sense of gratitude in thanking all those who helped me to carry out the term paper to its eventual fruitition.

I would like to take this opportunity to extend my sincere gratitude to LOVELY PROFESSIONAL UNIVERSITY for providing me with an opportunity to prepare a term paper on finance management.

I would like to express my most sincere gratitude to my Faculty guide Ms ANUSHITAL SINHA, Lovely Professional University – Phagwara for the constant guidance, encouragement and motivation he extended for the term paper.

I also extended my gratitude to my friends, classmates , well wishers and all those who helped me in some way or other in the completion of term paper.

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TABLE OF CONTENT:CHAPTER PAGE NO
INTRODUCTION---------------------------------------------------------------------- 04 a)HISTORY-----------------------------------------------------------------------------05 b)BACKGROUND---------------------------------------------------------------------09 C)MANAGEMENT--------------------------------------------------------------------10 COMPANY’S POSITION RELATIVE TO OTHER INDUSTRY-------------------10 CHANGE IN SHARE PRICE OVER A YEAR----------------------------------------12 CAPITAL STRUCTURE OVER LAST 3 YRS-----------------------------------------14 LIQUIDITY POSITION----------------------------------------------------------------15 FINANCIAL CREDIBILITY------------------------------------------------------------20 CREDIT RATING-----------------------------------------------------------------------22
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The company is also the lead bidder for the Mumbai sea link project. The company’s current EPC order book stands at Rs.IPO OF COMPPANY OVER LAST 5 YRS-------------------------------------------23 NEWS AND IMPACT ON ITS SHARE PRICE--------------------------------------25 INTRODUCTION:RELIANCE INFRASTRUCTURE:Reliance Infrastructure Ltd is a part of the Reliance-Anil Dhirubhai Ambani Group (ADAG).78bn.79% FY08 to FY11E. with cash & cash equivalent of more than Rs. And it is in a good liquidity position.25% and 10.190bn. 4 . It is not only India’s largest private sector enterprise in power utility but also the largest private sector player in many other infrastructure sectors of India. Reliance Infra led consortium has signed a concession agreement with the govt of Maharashtra for the second line of Mumbai Metro Rail Project on BOT) basis. The company continues to bag further projects in the infrastructure space with road (9 projects) and metro (3 projects) being the leading sectors. The top line and bottom line of the company are expected to grow at a CAGR of 21.

BSES Ltd has informed that Shri R V Shahi Chairman & Managing Director of the Company has relinquished the Office of Chairman & Managing Director. Sealink and Airports. Urban infrastructure which includes MRTS. Specialty Real Estate which includes business districts. The report provides a comprehensive insight into the company. The hallmark of the report is the detailed strategic analysis and Global Markets Direct’s views on the company. 5 .24. Kerala. Karnataka and Goa. Its companies distribute more than 25 billion units of electricity to over 25 million consumers across an area that spans over 1. executive biographies and key competitors. Andhra Pradesh. Global Markets Direct. trade towers. convention centre and SEZ which includes IT & ITES SEZ and non IT SEZ as well as free trade zones. In the infrastructure space the company is focused on roads.Reliance Infrastructure Ltd is not only India’s largest private sector enterprise in power utility but also the largest private sector player in many other infrastructure sectors of India. The Company generates over 940 MW of electricity through its power stations located in Maharashtra. the leading business information provider. a) HISTORY OF LAST 5 YRS:-  2002 . India’s second largest business house.The Board of Directors has appointed Shri S S Dua as acting Chairman & Managing Director. transmission. including business structure and operations.300 sq kms and includes India’s two premier cities. distribution and trading of electricity and constructing power plants as EPC partners. strategic and financial analysis of Reliance Infrastructure Limited. Mumbai and Delhi. In the power sector we are involved in generation. presents an in-depth business.

-Pulls out of 250 MW power project in Tamil Nadu -Reliance group increases stake in the company from 38% to 40. increases the stake in the company to 31.54% -Signs confidentiality agreement for buying out Enron's stake in Dabhol Power Company -Issues Non Covertible Debentures (NCD) for Rs 100 crore -Company's 500-mw Dahanu thermal power station achieves a availability of 100 per cent and a plant load factor (PLF) of 98. -Reliance Industries Ltd.92 per cent during March -Power Ventures increases the holding in the company to 23.-BSES appointed J P Chalsani as chief executive officer of the southwest Delhi electricity distribution company and the central-east Delhi electricity distribution company.88% -Acquires 51% stake in two Delhi Vidyut Board's power distribution companies (Central East Delhi Electricity Distribution Company Ltd and South West Delhi Electricity Distribution Company Ltd. the Central East Delhi Electricity Distributio Company was christened BSES Yamuna PowerLtd.29% through creeping acquisition route 6 . While the South West Delhi electricity Distribution Company was renamed as BSES Rajdhani Power Ltd. in which BSES has a controlling stake.) -Delhi government signs a share-holding agreement with Bombay Suburban Electric Supplies (BSES) and Tata Power for power distribution in Delhi -Changed names of its two power distribution companies in Delhi.

3. increases the stake to 28. Vice Chairman and Managing Director of Reliance Industries Ltd. and chairman. BSES Ltd. vice-chairman and managing director. BSES Rajdhani Power Ltd. -The name of BSES Ltd changed to Reliance Energy Ltd. North Eastern Electricity Supply Company of Orissa Ltd.Tamil Nadu Industries Captive Power Company Ltd and Western Electricity Supply Company of Orissa Ltd cease to be subsidiaries of the Company with effect from March 29. Southern Electricity Supply Company of Orissa Ltd. with Mr Anil D Ambani. 2003 -Members approve delisting of company's shares from the following stock exchanges: 1.unanimously being appointed by the Board as Chairman of BSES. 4.30% -Completes US$ 120 million Foreign Currency Convertible Bond issue  2003 . BSES Yamuna Power Ltd. Ahmedabad Share & Stock Brokers Association Bangalore Stock Exchange Ltd Calcutta Stock Exchange Association Ltd Delhi Stock Exchange Association Ltd Inter Connected Stock Exchange of India Ltd.Company becomes part of the Reliance Group.-Reliance Power Ventures acquires 28. voted as the MTV Youth Icon 7 . 5.545 shares of BSES Ltd. -BSES Andhra Power Ltd. BSES Kerala Power Ltd. -BSES Andhra Power Ltd. becomes 100-pc subsidiary of Reliance Energy -Allots equity shares to Bank of New York on options exercised by it -Anil Ambani.28. Reliance Industries Ltd. 2.

inks pact with BSES for bill collection -Promoters' holding in BSES has dropped by 5.of the Year by young Indians across the country -Maharashtra Govt. 2004.e.67 per cent to 52. took back its nominee from the company board -Reliance Salgaocar Power becomes Wholly Owned Subsidiary of the company -BSES signs an agreement with US bank for GDR conversion  2004 -Reliance decides to revamp Hirma mega thermal power project -Easy Bill. 8 .f. March 12.00.000 equity shares of Reliance Energy Limited.55 per cent -BSES Andhra Power Ltd. -Mops up 8 million (Rs 805 cr) through a five-year zero-coupon foreign currency convertible bond (FCCB) issue -Enters into two foreign currency facility agreements pursuant to which the Company was required to create security over certain of its assets by certain specified times after the respective dates of the Facilities -Life Insurance Corporation of India has informed that they have acquired 55. a Hero group company. & Reliance Salgaocar Power Company Ltd (RSPCL) merged with the Company -Janus acquires 4-pc stake in Reliace Energy -The name of BSES Limited shall be changed to Reliance Energy Limited and the trading symbol of BSES Limited be changed from BSES to REL w.

Govt of UP and Reliance sign the State Support Agreement -Reliance wins Koldam project over Essar -Reliance join hands with Temasek to establish first power VF .  2005. Lalit Jalan as Whole-time Director on the Board.622 shares representing 4. 2004  2006 -Reliance Energy join hands with Bajaj for CFL bulbs -The Company along with its consortium on November 07. 2006 signed Contract with Ministry of Petroleum and Natural Gas (MoPNG) for exploration and production of four Coal Bed Methane (CBM) blocks.launches multilingual power bills on September 16.99% of voting rights of Reliance Energy Limited via preferential allotment and the date of acquisition is April 03.95. -CRISIL has reaffirmed its outstanding ratings of 'AAA/Stable/P1+' on Reliance Energy Ltd's (Reliance Energy's) debt programmes. 9 . -Reliance Energy.  2007 -Reliance Energy Ltd has appointed Shri.-Reliance Power Ventures Limited acquires 91.

com/ Auditors Company Status Registrars Name Private Ltd Address 24. Vittalrao Nagar. : 23431551 Reliance Energy Mumbai Maharashtra 400055 022-30099999 022-30099763 Price Waterhouse N.A.rinfra.com Internet http://www.A. 500081. Andhra Pradesh Tel. Santa Cruz (East) District State Pin Code Tel.A. No.17Hyderabad : 23420815 .820 10 .investor@relianceada. Plot No. Group Collaborative Country Name Joint Sector Name N. 1929 N. Fax No.Reliance Infrastructure Industry Name Power Generation/Distribution House Name Ent.A. No Fax No Email rel. Year Of Incorporation Year Of Commercial Production Regd. Office Address Centre. Karvy Computershare Cyber Villa. Company Background .b) BACKGROUND:ADA N.

kcpl.com Internet http://www.com/ : : C) MANAGEMENT:- Name Designation Anil D Ambani Chairman / Chair Person Satish Seth Chairman Lalit Jalan Time Director S C Gupta Director (Operations) V P Malik Director Leena Srivastava Director L Rao Director V R Galkar Director Vice Whole 11 .ris@karvy.karvy.Email einward.

68 27.375.407.213.236.56 19.028.30 44.04 8.00 8.70 Application Of Funds Gross Block Less: Accum.517.60 55.187.50 1.89 31.22 922.66 21.867.690.018.39 1.81 10.06 1.922.439.93 6.584.784.322.099.62 26.87 821.70 26.68 1.97 2.23 766.44 13.70 20. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA.013.57 1.65 14.167.582.592.27 17.00 43.340.96 8.50 10.58 76.066.55 1.91 4.06 7.56 53.93 62.30 0.485.41 13.95 1.00 29.79 592.498.983.27 0.724.422.79 44.643.890.476.16 4.98 6.33 9.527.479.142.286.00 0.80 110.147.23 9.50 119.562.236.17 564.354.415.00 14.972.74 13.27 32.82 7.90 1.75 30.201.38 -4.282.72 1.09 405.26 5.523.66 240.189.52 3.10 440.460.041.61 -3.82 11.01 2.41 0.465.1) COMPANY’S POSITION RELATIVE TO OTHER INDUSTRY:Last price Total Asset Mkt Cap.868.00 7.11 46.30 32.71 12 .81 30.585.08 3.243.07 19.85 2. Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets 6.00 3.37 14.98 -723.190.72 25.20 271.65 13.50 3.826.319.557.40 159.925.277.84 6.288.373.01 0.127.659.25 307.37 7.00 1. (rs crore) Profit Sales Turnover Net NTPC Power Grid Corp Reliance Power NHPC Tata Power Reliance Infra Adani Power Neyveli Lignite JSW Energy Torrent Power 204.90 13.249.18 1.48 3.61 38.816.88 37.83 297.368.419.688.20 1.937.62 2.999.16 2.02 0.793.42 12.60 40.08 6.115.05 1.71 0.851.25 5.671.33 249.675.54 -1.239.69 3.792.62 7.85 152.075.00 5.80 119.71 294.663.35 7.80 30.36 78.214.58 0.60 56.40 3.404.85 7.128.353.10 15.126.70 41.19 2.50 168.20 3.80 7.424.40 7.09 93.999.61 --248.928.56 2.377.30 1.757.526.

792.33 30.40 1172205 0.00 ySENSEX 1136.24 40976146 18.00 1158.52 Sub total 11314788 4.41 0.70 Others Govt 73010 0. Inst.70 5.00 19.65 3)CHANGE IN SHARE PRICE OVER A YEAR:Share holding Share holding pattern as on : 31/03/2010 31/12/2009 Face value 10.99 Other investors Private Corporate 8658138 3.07 12.65 8786818 1520313 80804 1033572 11421507 28244302 225270262 23.04 0. 16:01 Open Price High Price Low Price Prev.75 43336279 19.00 12.25 Bodies NRI's/OCB's/Foreign 1613563 0.73 85028646 37.00 No.00 30/09/2009 10.92 28735393 12.24 NIFTY 5278. and 48601300 19.76 Grand total 244870262 100.239.19 100575807 44.214. Of % Shares Holding Shares Holding Promoter's holding Indian Promoters 104628646 42.Miscellaneous Expenses Total Assets / 0.75 Sub total 104628646 42.70 13 .75 37. Close 1130.54 9571170 4.00 No.45 766.00 225270262 100.85 46606200 20.46 5.62 0.04 Others 970077 0.66 1583117 0.00 13.80 1125.73 85028646 37. Of % No.71 55.43 Sub total 99749008 40.85 3.03 80804 0.00 93.10 17558.50 41.81 2.67 0.90 0.54 100.15%) BSE : Apr 30.62 12407296 5.75 Non promoter's holding Institutional investors Banks Fin.00 10.20 Volume 52 Wk High 52 Wk Low 262049 1404.999.562. Of % Shares Holding 85028646 85028646 37.74 99098927 43.90 (1.00 1123.69 Insurance FII's 35020354 14.30 37002154 16.51 General public 29177820 11.

10 95.Price Quantity Bid 1136.06%) NSE : Apr 30. Close 1128 .90 (1.95 Price Quantity 4)CAPITAL STRUCTURE FOR LAST 3 YRS:14 .50 715.00 1158.00 1137. 17:30 Open Price High Price Low Price Prev.00 0 Off er 0.00 0.00 1125.50 Bi d 0.00 Offer 0.00 0 Volume 52 Wk High 52 Wk Low 809131 1404.40 1126.40 11.

risk decreases. The capital structure should be planned generally keeping in a view the interest of the equity shareholders and the financial requirement of the company. paying interest etc.As then in 2008-2009. 5) LIQUIDITY POSITION:FINANCIAL STATEMENT OF COMPANY:15 .58 to 235. They have become conscious and they have taken correct decision and have made their authorised capital more secured by taking loan. equity shares has decreased to 228.32 The optimum capital structure is one that maximises the market value of the firm. INTERPRETATION:As the capital structure has increased with 228. risk has also been increased.72 Paid Up Paid Up Paid Up Shares (Nos) Face Value Capital 226023767 235578762 228530308 212320251 10 10 10 10 226.00 258.00 258.02 235.00 358. The equity shareholders being the owner of the company and the provider of risk capital(equity). Hence with increase in equity share the risk increased and with decrease in equity share .58 which means that risk has been increased which means with increase in equity share.Capital structure (Rs in crs) From To Class Of Year Year Share Equity 2008 2009 Share Equity 2007 2008 Share Equity 2006 2007 Share Equity 2005 2006 Share Authorized Capital 358.00 Issued Capital 228.93 214. would be concerned about the way of financing company’s operation.58 228.43 237.02 which means when in previous year their increased they become more conscious and analysed everything in order to decrease their risk.53 212.98 230.

16 8.42 568.36 88.082.435.668.89 1.69 697.052.85 3.967.581.67 18.511.919.499.922.48 3.470.74 696.903.24 - 185.43 2.678.396.49 2.470.76 6.073.Balance sheet Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets.52 3.192.582.18 5.10 1.19 12.00 1.49 - 228.62 783.33 1.63 11.423.81 785.849.10 7.85 2.39 6.65 192.01 - 10.36 5.834.328.89 2.14 10.452.125. loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written 8.69 6.172.308.41 9.14 5.664.88 16.814.57 - 212.347.117.649.49 - 235.22 .32 8.483.423.17 752.820.147.79 8.51 4.326.56 3.74 6.72 2.848.388.486.85 12.953.17 3.07 783.32 2.93 752.14 9.267.03 16 226.00 5.61 568.71 3.04 9.74 643.198.03 2.61 5.04 10.97 589.784.31 14.187.073.92 288.972.15 3.00 1.93 5.559.04 4.395.49 217.024.898.94 1.36 2.88 1.12 2.55 2.95 564.884.750.412.

88 659.40 9.91 147.63 11.51 2.07 258.86 1.06 417.403.53 3.22 157.14 308.95 149.443.26 914.93 2.76 222.88 5.05 -14.84 206.07 1.331.640.43 1.11 764.793.13 672.116.88 830.501.58 14.37 584.95 536.82 290.272.14 103.88 16.25 201.59 157.74 410.00 5.308.83 701.326.35 310.50 244.48 8.94 537.80 1.07 50.68 9.46 387.07 1.63 1.10 2.036.919.97 4.710.963.69 26.052.60 1.31 14.44 160.82 479.72 122.84 984.11 1.77 241.89 703.85 579.14 840.88 240.94 744.16 6.39 Profit loss account Mar ' 09 Mar ' 08 Mar ' Mar ' 06 07 Mar ' 05 Income Operating income 9.22 555.60 311.140. It means highlighting in arithmetical terms the relationship between figures drawn from financial statement.58 1. 17 .32 191.95 709.00 5.32 3.35 212.084.031.78 497.59 367.79 1.649.78 1. These ratios deals with the relationship between two items appearing in balance sheet or appearing in trading and profit & loss a/c itself.12 104.Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Total 18.915.499.73 1.276.87 87.89 371.36 3.86 61.92 -65.73 4.09 126.156.47 3.199.255.601.62 20.26 370.752.50 5.40 971.319.04 9.20 310.41 1.33 1.73 25.271.12 127.484.192.04 2.62 173.92 Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings RATIO ANALYSIS:A ratio is simply one number expressed in terms of another number.43 250.32 509.50 320.205.47 330.36 49.19 695.24 235.405.388.24 1.21 11.731.030.09 121.87 975.80 133.44 134.78 780.08 660.56 738.76 434.58 579.

74 1.09 4.LIQUIDITY RATIO: Liquidity means the ability of the firm to meet its current liabilities (or short term obligation) as they fall due. Liquidity is the ease with which assets may be converted into cash without loss. Liquidity implies the ability to convert current assets into cash LIQUIDITY RATIO:Liquidity ratios Current ratio Current ratio (inc.51 3.55 0.25 2.9 6 2.93 1. b) Liquidity ratio: Liquidity ratio is the relationship between liquid assets and current liabilities.45 55.37 40.94 3.47 1.2 6 3.06 2. It tries to establish relationship between current liabilities which are the obligation soon becoming due and current assets which presumably provide the source from which these obligation will be met. a) Current ratio:It shows the relationship between current assets and current liabilities.75 31. Current assets are the assets held on a short term basis which refers to an accounting period. st loans) Quick ratio Inventory turnover ratio 1. The ratio seeks to ascertain the liquidity position of a business enterprise.07 19.6 0 3.8 7 4.82 32.2 7 INTERPRETATION:CURRENT RATIO:-In this we see that the current ratio was highest in the year 2006 which signifies that the year 2006 was beneficial to 18 .58 3.

e they are unable to change their assets into cash which means that there is a lack of working capital in the organisation as this may be due to any other reason such as recession in 2008 which have decreased their current ratio position and they were unable to convert their assets into cash. A current ratio of over 1 is good news. investors should be aware that the quick ratio does not apply to the 19 . For lenders.e. the quick ratio is more conservative because it does not include inventories which can sometimes be difficult to liquidate. 4. Although the quick ratio gives investors a better picture of a company’s ability to meet current obligations the current ratio.07 which means that in this year there is sufficient availability of funds to meet its liabilities 100% But comparison to this year their position of quick ratio have been decreased from the year 2006 which means that there is no sufficient availability of funds to meet their liabilities for which they there is lack of working capital and there is decrease in their current position. although if we are comparing current ratio from year to year and it seems abnormally high. the quick ratio is very helpful because it reveals a company’s ability to pay off under the worst possible condition. QUICK RATIO:-In this we see that the quick ratio is highest in 2006 i. Compared with the current ratio. company may have problems with collecting accounts receivable or be carrying too much inventory. generally.the short term creditor and it was more than the year 2005 which shows that there was not a lack of liquidity and there was no shortage of working capital. But after 2006 the position of current ratio have been decreased which signifies that there was lack of liquidity i. Quick ratios are often explained as measures of a company’s ability to pay their current debt liabilities without relying on the sale of inventory.

55. power transmission) at Rs13. The Company has entered into various contracts in the areas of energy and infrastructure business. RELI has invested Rs12b.4b (vs 20 . metros. therefore. excess inventory as it was in year 2006 which was 19.60in which they have their least inventory high ratio implies either strong sales or ineffective buying which was in the year 2009 i. While the benefits from such contracts will accrue in the future years. A low turnover implies poor sales and. their progress is periodically reviewed.96. It also opens the company up to trouble should prices begin to fall. FINANCIAL CREDABILITY:Management Discussion and Analysis Management Discussion and Analysis of financial condition including results of operations of the Company for the year under review as required under clause 49 of the listing agreement with the stock exchanges. taking total investment in infrastructure project SPVs (roads.handful of companies where inventory is almost immediately convertible into cash INVENTORY TURNOVER RATIO:.This ratio should be compared against industry averages. •Increased equity investments : During FY09.e. is given as a separate statement in the annual report. High inventory levels are unhealthy because they represent an investment with a rate of return of zero.

will be paid to (i) those members whose names appear on the Register of Members of the Company after giving effect to all valid share transfers in physical form lodged with the Company on or before July 7. 2008.08 each (including a premium of Rs 1. • Authorised Share Capital In order to make the preferential issue of equity linked securities to the promoters.950 crore by increasing the number of authorised equity shares from 25 crore equity shares to 35 crore equity shares of Rs 10 each. if approved at the ensuing 79th AGM. from Rs 1. There was no unclaimed fixed deposit as on March 31.850 crore to Rs 1.Rs1.73 crore for the financial year 2007-08 which. • Preferential allotment of warrants The Company allotted 4.3b in FY08). on or before July 19. the authorised share capital of the Company was increased during the year by Rs 100 crore. • Fixed Deposits The Company discontinued accepting fixed deposits since December 1998. RELI has invested Rs1.e.000 warrants at Rs 1. 2008.812. The warrants are convertible into equity shares of Rs 10 each on or before 18 months from the date of allotment of warrants.30.822.30 (63 per cent) per equity share aggregating Rs 147. transferred Rs 95.00. Directors recommend a dividend of Rs 6. i. 2010. This represents ~46% of the equity commitments towards infrastructure SPVs under implementation. 21 . and (ii) to those members whose names appear as beneficial owners as at the end of business hours on July 7. Besides.The Company.061 being the unclaimed deposit and interest thereon to the Investor Education and Protection Fund set up by the Government of India. 2008.08 per equity share) on preferential basis to one of the promoter companies. • Net profit In this we see that the net profit have been increased 2008 to 2009 which means that there income is more than there expenses which proves that they are in a good position in order to handle any kind of obligation in future. • Dividend declared For the the financial year 2008-09 the company has declared a dividend of Rs 7 per share (70%) on fully paid up equity shares of Rs 10 each.6b mainly representing cost of land acquisition. during the year.

CARE assigns ‘+’ or ‘-’ signs to be shown after the assigned rating (wherever necessary) to indicate the relative position within the band covered by the rating symbol. CREDIT RATING OF COMPANY:Rating CARE has assigned a ‘PR1+’ (PR One Plus) rating to the proposed Commercial Paper/Short-term Debt issue of Reliance Infratel Limited (RITL) aggregatingRs.• Gross Profit In this we see that the gross profit have also increased from 2008-2009 which means that there is increase in sale of goods and there cost of production is lower which means that they have taken correct decision and they are in a sound position in order to handle their any kind of obligation in future. • Retained Earning In this we see that the retained earning is continuously and constantly increasing year by year which means that the company have a sufficient amount of part of profit which they can use to cope up with any kind of discrepancy in future. They can properly utilises their fund in allocation of proper resources.operational and management experience in the business of providing passive telecom infrastructure.500.00 crore. • Equity share capital:In this we see that the share equity share capital is decreasing from 2008 to 2009 which means that there risk have been reduced which was a result of proper management decision. This rating is applicable for instruments having a tenure upto one year.1. Instruments with this rating would have strong capacity for timely payment of short-term debt obligations and carry lowest credit risk. significant project execution skills. agreement with RCOM & 22 .The rating factors in the strength derived by RITL by virtue of being a part of the Reliance-ADAG group. status of being one of the largest passive telecom infrastructure company in India with countrywide network of tower sites and optic fibre network.

An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. rights issue or private placement. 3rd MAY 2010:QUOTES Live BSE Quote Live NSE Quote BSE Intraday Chart 23 . Rating Agency CRISIL Fitch CRISIL CRISIL Moody's S&P Fitch Instrument Long Term Debt Long Term Debt Short Term Debt Working Capital Debt International Debt International Debt International Debt Rating AAA Ind AAA P1+ AAA Baa2 BBB BBB - IPO issues made by companies in the last 5 yrs:Corporates may raise capital in the primary market by way of an initial public offer. tower sharing agreements with other new telecom service providers and positive outlook for passive infrastructure sector.RTL as anchor tenants. This Initial Public Offering can be made through the fixed price method. book building method or a combination of both.Ability of the company to increase tenancy levels in the increasingly competitive market is keyrating sensitivity. Increasing competition from other tower companies isthe rating concern.

00 • 1125.95 • 1098.00 0.55 (14-Oct2009) 1404.000-crore IPO by state-run National Hydroelectric Power Corporation (NHPC). Last year.60 • 781.25 • 2010) 1101.90 • 0.000 crore within a wee This would be second largest IPO after the economic downturn. the tower subsidiary of telecom service provider Reliance Communications (RCom).50 (04-May2009) 715. Reliance Infratel had got market regulator Sebi to approve its proposed IPO.000-crore one by state-run National Hydroelectric Power Corporation.00 0.55 • 1096.00 • 0.00 • 1134.00 • (03-May- • • • • • • • • • • • • • • • • 2010) 1101.90 (14-Oct2009) 1404.55 • • Traded Date Change %Change Open High Low Volume Best Bid Best Offer Previous Close 52 Week High 52 Week Low 03-May-2010 16:11 0.00 • (03-May- • 03-May-2010 16:10 0.000-crore IPO It would be the second-largest IPO after the Rs 6. the biggest being the Rs 6.90 1101. will file a draft Red Herring Prospectus (DRHP) for its proposed Initial Public Offer (IPO) of around Rs 5.161 • 0.95 • • • Avg.45 (04-May2009) 705. Volume • 257454 • 1185226 Reliance Infratel plans Rs 5. Reliance Infratel.00 • 1133.013 • 1101. with the market conditions “not being conducive”. However.55 • 1134. 24 .05 • 186.Last Trade 1101. the process was frozen.

The company intends to use the proceeds for its expansion plans. . . . . they added.Scout for potential acquisition targets.A quick "one-stop-shop" to understand the company.” sources close to the development said.Identify prospective partners and suppliers – with key data on their businesses and locations. The company needed funds for expansion plans and was in talks with a clutch of private equity majors. financial and operational performance.Compare your company’s financial trends with those of your peers / competitors. plans to raise funds from private equity companies have been shelved.Get detailed information and financial & strategic analysis on companies operating in your industry.“Reliance Infratel is looking at raising around $1 billion by offloading a minimum of 10 per cent stake. . Reasons to buy .Capitalize on competitors’ weaknesses and target the market opportunities available to them. including expansion of its portfolio of telecom towers and footprint. . with the IPO’s finalisation.Enhance business/sales activities by understanding customers’ businesses better. with detailed insight into the companies’ strategic. NEWS RELEVANT TO COMPANY AND ITS IMPACT ON THE SHARE PRICE OF THE COMPANY:25 . However.

064.95. Share Price Movement Gain/(Loss) Price in Rs in Rs in % 1.49% at the Bombay Stock Exchange (BSE) on Monday at 3:05 p.65 (190.08 1.008. or Rs 17.404.90 1.75 1.43% from its 52-week high of Rs 1.05 7.73%. RELIANCE INFRA UP 4.54 Period 1 Week 1 Month 3 Months 6 Months 1 Year  RELIANCE INFRA RISES 2.65. The total volume of shares traded at the BSE is 405.m.90 (131.35 76.200-MW Rajiv Gandhi Khedar Thermal Power Plant by putting 600 MW on stream at Hissar in Haryana on Sunday. the shares rose 1.061.3.30 440.146.44) 1. up Rs 24.30.6 million shares to AAA Project Ventures (P). a 26 .35.45 and above 109. Reliance ADAG invests over Rs 18. It allotted 19.25) (11. Currently. up Rs 45.65.50% at the Bombay Stock Exchange (BSE) on Thursday at 10:23 a.21 billion in the company. The company has commissioned the first phase of 1.m.30. at Rs 1.50% ON FUNDING NEWS:- Shares of Reliance Infrastructure are trading at Rs 1.49% ON NEWS OF SECURING ORDER:Shares of Reliance Infrastructure are trading at Rs 1. the stock is trading down 24.004. or 4.737 In the earlier session.50 and low of Rs 1.00) (15. The scrip has touched an intra-day high of Rs 1.015.76) 575.18% over the 52-week low of Rs 507.205.75 10.023.023.60 0. or 2.

45 and above 103.49%.146.67 Period 1 Week 1 Month 3 Months 6 Months 1 Year Reliance ADAG invests over Rs 18.9 million convertible warrants to AAA Project Ventures (P) entitling them to one equity share of Rs 10 per warrant at an issue price of Rs 929 a share. The promoter group holdings have gone up to 42.73% from 37. the promoter group`s holding will increase to 48%. as a result of this new equity capital infusion.205.55) (12. Currently.35 3.65 (207. The total volume of shares traded at the BSE is 157.9. The effective purchase cost to the promoter group is Rs 1.Reliance Anil Dhirubhai Ambani promoter group company against convertible warrants issued to them.023.21 bn in Reliance Infra Reliance Infrastructure today allotted 19. The scrip has touched an intra-day high of Rs 1.30 (24. the shares climbed 0.95) 1.30 1. The issue price was calculated as per applicable SEBI guidelines. 27 .65.90 (148.000.969.404.74%.027 and low of Rs 1.19) 549.55 448. the stock is trading down 27.04% over the 52week low of Rs 504.112 a share after taking into consideration the upfront payment of Rs 7. In the earlier session.00 0. On converting the balance warrants. a Reliance Anil Dhirubhai Ambani promoter group company against convertible warrants issued to them.80 81. at Rs 998.83 billion already received on warrants issues earlier. or Rs 4.14% from its 52-week high of Rs 1. The board had on July 2009 allotted 42.30) (17.44) 995.95) (2.6 million shares to AAA Project Ventures (P).35. Share Price Movement Gain/(Loss) Price in Rs in Rs in % 1. which were cancelled.

68 4. compared to its five-day average of 74. thereby enabling greater participation in mega growth opportunities in high growth infrastructure areas.00 956.898 at the BSE (9.91 236. The share closed down 0.) 46.00 Gain/Loss (Rs.10 38. or 2.35 a.00 956. Thursday). thereby generating superior returns for its over 1.00 956.14 -12.00 -138.70 672.00.70 and an intraday low of Rs 919.63 -2.m.This equity capital infusion will substantially enhance Reliance Infra`s net worth to Rs 160 billion.233 shares.00 956. and further augment its borrowing capabilities to Rs 320 billion at even a debt: equity of 2:1.14 7.55 44. The total volume of shares traded was 95.75 Latest Price 956.90 918.75 at Rs 914.5 million shareholders.020.17%.00 956.25 % Gain/Loss 5.66 4.00 1094.90.45 911.92 28 .65.10.70 283. up Rs 41.63% or Rs 5.00 956.70 68. Shares of Reliance Infrastructure gained Rs 21.15 42.33%..30 887.85 913. to trade at Rs 1. the share was quoting at Rs 956.15 984.  Reliance Industrial Infra up on buying interest Reliance Infrastructure Industry touched an intraday high of Rs 987.579 shares. or 4. Share Price Movement During The Last 12 Months Period 3-Days 5-Days 7-Days 15-Days 1-Month 3-Month 6-Month 9-Month Price 909.00 956.15 -28.84 4. an increase of 199.58%. At 12:56 pm. It was trading with volumes of 223.

Auto stocks were in demand following good March 2010 monthly sales of auto firms.00 591. Realty stocks also gained on fresh buying. The market surged to a fresh 25-month high in early afternoon trade.1-Year 364.90 956. up close to 140 points from the day’s low and off close to 20 points from the day’s high. 13:25 Hours IST) share market live updates – Navia Markets Ltd The key benchmark indices hovered near their their highest level in 25 months in early afternoon trade as firm Asian stocks underpinned sentiment. with the stock moving past the Rs 1.79%. US markets settled at 18-month highs on Thursday. Stock-specific action may rule the roost in the near term based on expectations of Q4 March 2010 results. The BSE 30-share Sensex was up 139. Except the capital goods and IT indices.100 mark.16 points or 0. 1 April 2010 while some Asian markets zoomed to 19-months high in today’s trade buoyed by an upbeat US job data. all the other sectoral indices on BSE were in green. Metal stock rose on gains in metal prices on the London Metal Exchange on Thursday. Index heavyweight Reliance Industries (RIL) was firm. 1 April 2010. The market came off the higher level in early trade after a firm opening triggered by positive global cues. 29 .10 161. Stocks held firm in afternoon trade. The market breadth was strong. IT bellwether Infosys kickstarts the reporting season on 13 April 2010.99 Reliance Infrastructure jumps in firm market share market live news Reliance Infrastructure jumps in firm market share market news updates (05-Apr-2010 .

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