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Friday, June 1, 2012

Ramky to raise Rs 700 cr for BOT projects

Ramky Infrastructure is evaluating options for raising funds for its key build-operate-transfer (BOT) road projects. Though the quantum is yet to be determined, the company would require about Rs700 crore in the form of equity to complete these projects.

According to company officials, Ramky has about Rs5,000 crore worth of road projects and the equity infusion required for them is estimated at about Rs1,100 crore. While about Rs300 crore has already gone into these projects either through equity or working capital requirements, the balance would be required in the next 30-36 months , according to a DNA report.

“We have the strength to fund the projects internally. But, we are evaluating the option of raising funds at the holding company or special purpose vehicle level. We may require about Rs520 crore in the next two years,” Gautham Reddy, Ramky Group’s executive director, told analysts on an earnings call on Wednesday.

Ramky bagged two significant road projects by the National Highways Authority of India (NHAI) in the last fiscal. One of the projects is in Uttar Pradesh is for six-laning of Agra - Etawah bypass section on the NH-2 under the NHDP Phase V to be executed on BOT (toll) basis. The project is estimated to cost about Rs1,207 crore and would be completed in about 30 months.

The other BOT project is in Karnataka for four-laning of Hospet-Chitradurga section of NH-13 with an estimated cost of about Rs1,033.65 crore. Both the projects have been taken up with equity and debt component in a ratio of 25:75.

“We are hopeful of signing a concession agreement for these projects on July 17. The financial closure for the projects would be achieved by June-end. We are already in discussion with the bankers for raising the required debt,” Reddy said.

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