Infrastructure India Share Discussion Threads

[herb clark] 31/8/2018 08:09

Why is my buy not showing up?

[noirua] 30/8/2018 10:22

Key Information Document KID ( as posted before )

[uknighted] 30/8/2018 08:07

IIP another hot tip by Cudmore - nice one son!

[wilwak] 30/8/2018 08:00

Yes. Great to have a serious discussion on this share.

Simply on the face of it there is strong potential.

DLI is clearly a large operation now but it does seem that it’s loss making based in the rate of cash burn that IIP has been supporting. It’s difficult to gauge what level of ramp up will start generating profits.

I am guessing that if DLI continues to underperform then this could be the circumstance that IIP loses its entire stake.

If the share price drops again down to 1-2p I’d certainly seriously consider buying a fresh holding and probably quite a sizeable one. That’s assuming Barclays allow clients to buy IIP again! At present it is blocked.

The investment by a major logistics operator is potentially a huge positive for DLI. I just hope that DLI doesn’t simply get swallowed up at the expense of existing shareholders.

This funding appears very much a ‘rescue’ and usually rescues don’t come cheap for existing investors.

Let’s hope this is is the start of a new dawn for IIP and DLI.

Of course the original investors in IIP have been badly burned so far. They’ll be very cautious about the future.

[kenmitch] 30/8/2018 07:03

Thanks for a series of very helpful posts. I realise the disadvantages of Management controlling 75%, but there's also the plus that it's even more in their interest to see IIP thrive. And if it does then that current huge discount (assuming 35p is even vaguely realistic now) will narrow anyway.

wilwak could well be right re IIP being a punt that could be a roaring success. And hoping/assuming now the fund raising is for sure that risk of wipe out has greatly reduced.

[stockbuilder] 30/8/2018 06:46

Thanks for your follow up comments.

I'm afraid I didn't research the Barnet connection very thoroughly, I agree after looking through their filings it seems unlikely. Perhaps this is the one ... hxxp://www.barnetholdingsllc.com/index.htm.
Not much information here, but does seem to have rather more assets and interest in investments.

[epistrophy] 29/8/2018 22:14

According to the filed reports, they have £49 in *total* assets so I suspect this is not the Barnet we are looking for.

[epistrophy] 29/8/2018 21:44

Hmm that can't be the same Barnet surely?

[wilwak] 29/8/2018 21:39

Thanks for the link to the KIID and your really interesting comments.

Clearly many brokers haven’t yet updated to reflect the KIID.

You’re exactly right about the dilution of shareholding. It’s not clear under what circumstances the shareholding will be zero.

Totally agree that the new Investor has experience and expertise.

My concern remains with the IIP and DLI managements ability to drive forward. I’m also concerned that the new investors objective is to gain 100% control. There’s clearly some clauses in the agreement that will cause this to happen to the detriment of IIP.

A punt that could go spectacularly either way.

[stockbuilder] 29/8/2018 21:17

A few thoughts from an amateur:

Agree, some aspects of the company are concerning, in particular the apparent cronyism.

But, for balance:
GGIC Holdings (ie. The fund managers) own 25% of shares. Their affiliate Barnet Holdings own 50%. However what isn't clear the nature of the affiliation as Barnet Holdings would appear to be connected to Barnet Council ( and have been for some time, perhaps a local government investment vehicle or perhaps pension fund, speculating. In any case, presumably they are acting at least somewhat independently of GGIC.

The PSA global involvement is presumably to be welcomed and will hopefully provide both funds and expertise to get some value from the DLI asset. One thing that seems to have been missed from discussions is that although PSA will end up owning a large chunk of DLI, IIP will still own a sizeable chunk (25-49%) and it will likely be worth substantially more. However, this obviously comes at some risk as they could end up owning nothing if things go awry.

Still, the funding should go someway to sorting the substantial debt and, with the capital, significantly improve their financial position so reducing reliance on high interest credit.

It appears a KIID is available, though a little hidden on their website.

hxxps://www.iiplc.com/wp-content/uploads/IIP-plc-KID-Report-July-2018.pdf

Recent, but nonetheless present.

Worth a punt I think if you agree with the directors' apparent vision for DLI and albeit at the risk of trusting them to follow through and use their new funds wisely.

[wilwak] 29/8/2018 20:30

Exactly. The minor shareholders have no say in the company.

The manager owns 75%+. The bridging loans were all from an affiliate of the manager.

Since inception they have shown no interest in managing the large discount to NAV.

12 months ago investment companies were required to produce a KIID. IIP still haven’t which means most UK brokers will not now allow clients to buy shares.

The present managers and directors saw over a decline in share price from issue right down to 1.8p.

If you still trust and have faith in the management then fine. Have a punt. Many clearly do not.

[epistrophy] 29/8/2018 18:45

kenmitch: the problem is that management control the company with 75%+ of shares. Our fate is entirely in their hands. The persistent large discount to NAV suggests that people don't trust them!

Their 75% ownership also means last week's shareholder vote was a formality, which most posters here seem to have missed.

Ownership details:

[noirua] 29/8/2018 16:49

Posting of Circular and Notice of Extraordinary General Meeting
31/07/2018



Funding constraints have overshadowed progress at IIP's largest asset, DLI. Without sufficient completion capital, DLI has to date been unable to further progress construction at its terminals and has instead focussed on streamlining its existing operations.

DLI's operational terminal at Nagpur continues to increase its market share and to acquire new customers but the inability to complete Phase 2 construction at Nagpur has to date held back growth in bulk cargo, auto logistics and warehousing.

The net proceeds of the DLII CPS will be used to provide construction and working capital to DLI.

The Board intends that the proceeds from the disposal of the Sale Shares be utilised to repay the unsecured US$40 million bridging loan facility (the "Bridging Loan") provided to the Company by Cedar Valley Financial ("Cedar Valley") in accordance with its terms.
The Bridging Loan is due for repayment on the earlier of (i) 15 days following the completion of the Proposed Financing; and (ii) 17 September 2018.


Effects of the proposed financing: Pursuant to the Transaction Documents, an aggregate of up to US$125 million (approximately £95.5 million) before expenses will be conditionally made available to the Group by way of: (i) the issue by DLII of the DLII CPS in an amount of up to US$75 million ("DLII CPS Amount"); and (ii) the sale by IIH of the Sale Shares in DLII for a consideration of US$50 million.

The net proceeds of the Proposed Financing will provide construction and working capital to DLI, will enable the Group to pay down the Bridging Loan (in whole or in part) and, subject to Cedar Valley and GGIC agreement, the Working Capital Loan and will provide additional working capital for the Group.


The Investor PSA India Intermodal Private Ltd ("PSA") is part of PSA International, one of the leading global port groups with significant port operations in countries across Asia, Europe and the Americas.

As one of the leading global port groups, PSA International participates in around 40 terminals in 16 countries across Asia, Europe and the Americas with flagship operations in PSA Singapore Terminals and PSA Antwerp, and five container terminals in India. In its terminals across the world, PSA brings along its operational expertise and commercial network with shipping line customers and logistics industry partners and suppliers to deliver reliable and efficient service to customers.

24/08/2018
Result of Extraordinary General Meeting


Shareholder Information:

[the shrewdster] 29/8/2018 14:33

Cud

The famous 1 shs on bagr. News next week, funding at 3.6p. Chinamen taking 51% of the company

[kenmitch] 29/8/2018 08:37

The share price forecasts (constantly repeated here) of 30p and more as soon as a yes vote was confirmed showed lack of basic investment knowledge. The yes vote was always likely and so was, as I posted here (and got down ticks for stating the obvious!) already priced in. If any readers of this thread bought around 8p on the strength of those stupid ill informed posts, they have had a costly lesson. otoh in time they might do well if patient. But.... didn't expect to see the share back to 4p again!

What's not clear is what happens next. Guess the share will do little short term and until next news to move it either way? But at just 4p perhaps worth a small top up?

If not why not?

[noirua] 28/8/2018 13:26

Main shareholders:

Percentage of shares not in public hands (as at 8 January 2018) – 75.56%

[hvs] 28/8/2018 12:55

Does it have directors ???

[noirua] 28/8/2018 12:25

Looks like time to grab a few at these levels - bought some more at 5.15p a little earlier.

[noirua] 28/8/2018 11:15

Last director buy was at 3.9p.

[noirua] 28/8/2018 10:16

Looks to have reached a low point if unexpected by most. MMs appear to be holding hardly any stock. Most find it easy to buy when the price is rising.

[cudmore] 28/8/2018 08:38

Mms still filling orders here and sucking out the weak holders.

[hvs] 28/8/2018 07:40

Does it not build toilets in INDIA ????

Must be booming .