Indian Energy Share Discussion Threads

[transforma] 07/2/2011 21:52

The Beagle

I don't think you are missing anything, the bid will come, if you are concerned then ring the company and ask about the timescales.

NAV is 53p, they've signed exclusivity, one must chill while the deal is being done.

[transforma] 07/2/2011 21:45

Apologies about the formatting which I can't seem to change.

So the interims speak for themselves.

Bookie is trying to buy your shares cheap before the bid comes in.He's a very naughty boy! But I'm happy to buy more if his deramping is successful.

One day soon you will wake up to a nice Indian energy RNS.

[transforma] 07/2/2011 21:34

Interims to 30th sept 2010:



RNS Number : 4865Y
Indian Energy Limited
23 December 2010

Interim Results for the six months ended 30 September 2010

 Indian Energy Limited (AIM: IEL.L) ("Indian Energy", "Company" or "Group"), an independent power producer focused on becoming a long-term owner and operator of wind farms in India, announces its unaudited interim results for the six months ended 30 September 2010.

 

Financial highlights:

á     Revenue increased to £2.306m (2009 H1: £1.422m).

á     Adjusted EBITDA increased to £0.890m profit (unadjusted £0.597m, 2009 H1: profit of £0.290m and loss of £1.116m respectively).

á     Loss after tax decreased to £0.767 (2009 H1: £1.983).

á     NOPAT loss decreased to £0.151m (2009 H1: £1.574m).

á     Positive net cash flow from operations, before movements in working capital of £0.417m (2009 H1: £0.360m negative).

á     Net asset value per share of 53p (2009 H1: 58p).

á     Further cost reduction underway.

 

Definitions:

"Adjusted" - references to adjusted performance measures refer to the exclusion of exceptional costs from that measure.  "EBITDA" - Profit before interest, tax, depreciation and amortisation.  "NOPAT" - profit after tax, but before depreciation.    "2009 H1" - the previous half year comparative (either six months ending 30th September 2009, or as at 30th September 2009).

 

Operational highlights:

á     Increased operational capacity to 41.3 MW (2009 H1: 24.8 MW).

á     Identified pipeline of projects.

á     Signed two memoranda of understandings for a total of 250 MW of capacity over the next 2 years.

á     Optioned 50 MW project with Suzlon.

 

Commenting on the results, Rupert Strachwitz, CEO, said:

"The first half of the year has been a challenging one, but we have nevertheless been able to turn in a creditable performance.  We continue to examine options for funding the future development of the business and, as part of this, have engaged with a number of strategic investors which may or may not lead to an offer for the business. Meanwhile we are also focusing very hard on reducing our overheads, conserving cash, and making further strides towards operational breakeven." 

 

For further information see www.indian-energy.com or contact:

 

Indian Energy

Rupert Strachwitz

[phone]



Shantanu Bagchi

[phone]







Arden Partners

Chris Hardie

[phone]

Nominated Adviser and Joint Broker











Execution Noble

Richard Crawley

[phone]

[simon_64] 07/2/2011 18:09

i have been involved in several takeovers within companies i have worked for i would say it took two to three months from the day due diligence started to the offer on each occasion, happy to hold.

[bookiebuster] 07/2/2011 17:55

We'd have got away with a profit - if it wasn't for that pesky weather...

The currency difference made the last results look better than they actually were. Add the exchange loss and H1 came in at -£1.4m instead of the headline -£0.8m. That's after -£2.0m and -£2.1m for the previous six month periods so at least its a reduced loss

However they've been operating in an 18 month window where all Operation & Maintenance costs at Gadag were paid for. From Sept 2010 onwards IEL have to pay these themselves (adding on roughly 25% to the total costs). The last results were up to end of Sept so these added costs will be shown in the next set of results

IEL is losing around -£3-4m a year, has -£20m debt and net cash of close to zero. Hardly a position of strength in which to be negotiating terms with any buyer

[dcroston] 07/2/2011 17:29

Further to my last post, my understanding is that the company are looking for investment to grow the company rather than to sell assets.

The last matrix broker buy note was quite insightful for those that may not have read it.

[the_beagle] 07/2/2011 17:09

I think the company suffered adverse weather last year and one wind farm came on stream 6 weeks late for reasons outside their control. Normal weather and a full year's trading, coupled with sizable cost reductions, should make the company profitable as per the IPO intentions. They sound as if they only need more funds for further developments, not to keep above the water.

The chairman made a big point in December of stating the asset value as 53p (not 57p as I said earlier), so even halving that leaves a reasonable exit of 26.5p. It's all guess work I'm afraid and I would not buy today with the information I have come across since I dived in, originally with 80k but now reduced to 40k, as I was feeling a bit over-exposed.

[dcroston] 07/2/2011 14:06

Thanks for your post the-beagle.

This is just a punt for me. I bought this for a few reasons.

1. It looks oversold and cheap.
2. Its a potential takeover target.
3. The house broker was buying.

I don't know much about the business at the moment (hence my earlier question) except that it has 2 fully operational wind farms with the capacity to generate around 40MW.

Surely though if it can create the electricity thats stated then they can start to generate some profits. Has there been operational issues?

If there isnt any profits in the projects then the obvious question is, where is the value for a buyer if the wind farms can only break even? I assume that a company prepared to invest some more cash sees growth potential here.

[the_beagle] 07/2/2011 11:05

dcroston....The RNS of 23rd December spelled it out I think. Basically they have found raising funds in the UK market rather harder that they originally thought, and now see a "strategic partner" as the only way forward. On the face of it they have a company probably breaking even on trading, but short of the monies they need to go forward. It has been a rough journey for the original investors from the IPO, fortunately I was not in at that time, and they don't seem to want to stump up any more funds now.

I fear that we are not in the best of bargaining positions to get a decent price for the company, and doubt we will see anything like the reported NAV of 57p.

I'm very slightly down on a January purchase and am running out of patience. One potential " bidder" is doing due diligence atm, which excludes talks with other parties if there are still any.

The recent static share price suggests that we could have a big wait I'm afraid.

What's your take on it?

[dcroston] 06/2/2011 19:26

You wouldnt have thought that it would take all that long but inevitably these things always seem to take longer than expected so I will say that it could be anytime soon but it may also take up to 3 months.

The company should have something written into the exclusivity agreement that outlines how much time is permitted for each step in the process including due diligence but there is obviously some kind of confidentiallity clause that prevent the company from declaring this.

Quick question for those that know the background here.

Why are the company considering selling the company at this stage of the game?

[the_beagle] 06/2/2011 14:07

Transforma......Am I missing something?

[transforma] 06/2/2011 11:24

RNS Number : 4612Z

Indian Energy Limited

14 January 2011

Indian Energy Limited

Update on previous announcement

Indian Energy Limited (AIM: IEL.L), the independent power producer that is focused on wind farms in India, wishes to update shareholders following the announcement, made on 23 December 2010, that it is engaged in discussions with a number of potential strategic investors.

The Board are pleased to announce they have signed an exclusivity letter with a company to allow due diligence to take place. The Board will update shareholders on further developments in due course

For further information see www.indian-energy.com or contact:

Indian Energy: Rupert Strachwitz [phone]

Shantanu Bagchi [phone]

Arden Partners Chris Hardie [phone]

[transforma] 06/2/2011 11:04

The beagle

I agree, looking forward to an RNS this week.

[the_beagle] 06/2/2011 09:25

Over three weeks now since we allowed a potential bidder due diligence. I would have thought an announcement is due any time now. share price movement, or lack of it, gives nothing away. Any views?

[the stinger] 02/2/2011 21:43

Transforma,,,Is there a big holder or holders i.e 10% + ??

Anyones guess whats gonna happen here...all i can say is GLA...

[bobs good eye] 01/2/2011 08:09

Stinger - To PI's the Institutions actions sometimes seem strange but remember these are not the actions of a single person. They don't buy and sell on a whim and are playing with other people's money. The current scenario probably just doesn't fit their strategy anymore. The decision to liquidate their holding would have been taken months ago.

[the stinger] 31/1/2011 23:28

Questions for someone....

1. Why totally sell out now? (the II's)
and
2. Why & how are the mm's taking so many?,,,and happy to do so.....

Anyone any clues/possible senario's.....

Appreciated..

[solardave] 31/1/2011 23:02

It looks to me like the overhang is cleared now?

[the_beagle] 31/1/2011 16:44

BGE...Yes I see it know, but I thought they sold 250k of those last week.

[the_beagle] 31/1/2011 16:40

BGE I certainly hope so. Do you know for sure?

[bobs good eye] 31/1/2011 16:20

Beagle - that's Premier Fund Managers remaining holding being offloaded.

[the_beagle] 31/1/2011 15:55

Ouch.....450k dumped at 16.5p. Looks as if a quick exit was required.

[dcroston] 31/1/2011 09:36

Will just add that if a deal is done, it should be a very quick turnaround.