IPO Note | InvITs
May 02, 2017
IRB InvIT Fund
SUBSCRIBE
sue Open: May 03, 2017
Is
On the growth highway
Issue Close: May 05, 2017
IRB InvIT Trust is the Registered Infrastructure Investment Trust under the InvIT
Regulations. The Trust primarily intends to own, operate and maintain a portfolio of
Issue Details
six toll-road assets in the Indian states of Maharashtra, Gujarat, Rajasthan, Karnataka
and Tamil Nadu. The Trust’s Sponsor is IRB Infrastructure Developers Limited, one of
Face Value: `1000
the largest infrastructure development and construction companies in India in terms of
Offer for Sale: **3.48cr units
net worth in the roads and highways sector.
Portfolio of income generating assets: Upon completion of the Formation
Fresh issue: *42.16 -**43.00 cr units
Transactions, Trust will own 100% of six Project SPVs. Each of these Project SPVs owns,
operates and maintains a toll-road project in India. The Initial Road Assets have
Issue size (amount): *`4648cr -**4655cr
growth potential due to expected growth in traffic volumes as a result of regional
growth and expected increases in toll fees as a result of inflation adjustments.
Price Band: `100-102
Diversified road project portfolio and revenue base to provide an edge: The
Lot Size: 10,000 Units and in multiples of
geographical diversification of the Initial Road Assets has improved due to experience
5,000 units thereof
and expertise, including Trusts ability to evaluate, acquire, operate and maintain new
*Calculated on lower price band
projects. The geography and temporally diverse project portfolio provides them with
an advantage in capitalizing on new opportunities available in the roads and
** Calculated on upper price band
highways sector. That type of diversification strengthens their business by reducing
Book Building
their reliance on any specific region or project and reducing the potential impact on
the business of any economic slowdown or force majeure event in any particular
Institutional
75% of issue
region or with respect to any particular project.
Retail
25% of issue
Experienced Sponsor, Investment Manager and Project Manager: The Sponsor is one
of the largest infrastructure development and construction companies in India in terms
of net worth in the roads and highways sector with a large project portfolio of 8,183
Lane Kms of roads and highways in operation, under construction or under
development, excluding the Initial Road Assets, as of December 31, 2016. The
Sponsor has an experience in developing roads and highways infrastructure and has
received various industry awards and recognitions. The Investment Manager has
approximately 18 years of experience in operating a road BOT project and is also
experienced in developing, operating and maintaining toll plazas.
The Project Manager is a wholly-owned subsidiary of the Sponsor, having executed a
majority of all EPC work being undertaken by the Sponsor. It also acts as the
operations and maintenance contractor for substantially all of the Sponsor's projects,
including the Initial Road Assets.
Low leverage upon Listing to provide debt capacity for financing future assets: The
Net Proceeds will be used to repay and replace a significant portion of the Project SPVs
existing indebtedness. The resulting low leverage will provide them with debt capacity
to grow their business, including financing future acquisitions. Trust intends to finance
future development and acquisitions through the issuance of additional Units, as well
as through bank borrowings and other indebtedness, subject to the borrowing limits
contained in the InvIT Regulations.
Outlook and Valuation: In terms of valuations, we have considered the conservative
Abhishek Lodhiya
traffic growth (3-5%) and higher discounting factor of around ~11% which results in
+91 22 39357800 Ext: 6811
the return of 25-30% on the enterprise value. Further, reduction in cost of debt and
[email protected]
increase in traffic growth will lead to further higher returns. Hence, considering the
above positives coupled with attractive valuations, we recommend a SUBSCRIBE on
the issue
Please refer to important disclosures at the end of this report
1
IRB InvIT Fund| IPO Note
InvITs a new instrument for investment
What is InvIT?
SEBI introduced Infrastructure Investment Trust (InvIT) Regulations for infrastructure
projects keeping in mind the huge infrastructure needs of our country. Simply put,
InvIT is a mechanism that enables developers of infrastructure assets to monetize
their assets by pooling multiple projects under a single entity (Trust structure). InvITs
are first-of-their-kind, really long-term instruments. At present, Government
Securities or G-Secs are the only other instruments with such a long life. InvITs too
may be structured as funds with a very long tenure or open end structure.
Considering that the regulations are new, most of the InvITs that come to raise
money will have a very short or no track-record. Worldwide InvITs are positioned
as high-dividend paying investments suitable for investors who are especially
looking for long-term, stable cash flows with moderate capital appreciation.
Salient Features
InvITs have to ensure that they distribute 90% of their net cash flows to the unit
investors. There is a leverage cap of 49% on the net asset value. There is also a
cap on exposure to under-construction assets (for publicly placed InvITs). The
sponsor of the InvIT is responsible for setting up the InvIT and appointing the
trustee. The sponsor shall hold minimum 15% of the units issued by the InvIT with a
lock-in period of three years from the date of issuance of units. The InvIT
regulations also require companies to maintain certain investment ratios, including
80% of investments in completed and revenue-generating assets. InvITs that have
been filed so far have specified minimum investment limits of `10 lakh per
investor.
When are distributions given out?
InvITs distribute regular dividends. They must be declared and distributed not less
than once in every six months. The amount of cash available for distribution
depends upon the InvITs’ own dividend or interest income and principal payments
from its portfolio. All Non-Resident Investors, including eligible NRIs should note
that refunds, dividends and other distributions, if any, will be payable in Indian
Rupees only.
Taxation
Investors of InvITs can draw comfort from a favorable tax-regime. Dividend income
is tax exempt and no capital gains are levied if units are held for over 3 years and
sold through the bourses. There is a small withholding tax for interest income to
NRI unit holders. Further, there is the pass-through structure of InvITs mandating
distribution of a minimum
90% of net-distributable cash and nil dividend
distribution tax.
Delisting
In accordance with the InvIT Regulations, at all times, post-listing of the Units, the
minimum public unit holding of the Trust is required to be in accordance with
Regulation 14(1A) of the InvIT Regulations, and other than the Sponsor, for its
related parties and Associates, the Trust is required to have, and maintain, a
minimum of 20 Unit holders forming part of the ‘public’, each holding not more
than 25% of the aggregate amount of the Units on a post-Issue basis, failing which
action may be taken as may be specified by the SEBI and the Stock Exchanges,
including delisting of the Units under the InvIT Regulations.
May 02, 201
2
IRB InvIT Fund| IPO Note
Company background
IRB Infrastructure Developers Limited (the “Sponsor”) is, one of the largest
infrastructure development and construction companies in India in terms of net
worth in the roads and highways sector according to the NHAI's annual
prequalification for public private partnerships in national highway projects report
for 2016. Excluding the toll-road assets that will be transferred by IRB to Trust, as
of December
31,
2016, IRB has
16 road projects, of which eight are
“operational”, five are “under construction” and three are “under development”.
Trust wishes to acquire an initial portfolio comprising of the Project SPVs, all of
which are currently either wholly or majority owned by IRB and its subsidiaries. The
Trust has been settled by the Sponsor pursuant to the Indenture of Trust in
Mumbai, India, as an irrevocable Trust in accordance with the Trusts Act. The Trust
was settled with an initial settlement amount of `10,000 by the Sponsor. The Trust
has been registered with SEBI as an infrastructure investment trust under the InvIT
Regulations. Trust intends to own, operate and maintain a portfolio of six toll-road
assets in the Indian states of Maharashtra, Gujarat, Rajasthan, Karnataka and
Tamil Nadu. These toll roads will be operated and maintained pursuant to
concessions granted by the NHAI. Trust believes that upon the listing of the Units
on the Stock Exchanges, it will be the first listed infrastructure investment trust
focused on toll-road assets in India.
The object and purpose of the Trust, as described in the Indenture of Trust, is to
carry on the activity of an infrastructure investment trust under the InvIT
Regulations, to raise resources in accordance with the InvIT Regulations, and to
make investments in accordance with its investment strategy. The Trust is required
to make distributions to the Unit holders in accordance with the InvIT Regulations.
Distributions are expected to be made by the Trust to the Unit holders, from time to
time, in accordance with the Indenture of Trust and the InvIT Regulations. The
Trustee will ensure that the Investment Manager declares distributions, not less
than once every six months in each Financial Year. However, Unit holders should
note that there is no assurance or guarantee that distributions will be made in any
amount or at all.
Project Portfolio of Six road assets under InvITs:
As of December 31, 2016, the Project SPVs owned, operated and maintained the
following toll road assets comprising 3,645 Lane Kilometers of highways:
Bharuch-Surat NH 8 toll road: a 65.00 km section of NH 8 between
Bharuch and Surat in Gujarat, which is held by IDAAIPL (the “Bharuch-
Surat NH 8 Project”)
Jaipur-Deoli NH 12 toll road: a 148.77 km section of NH 12 between
Jaipur and Deoli in Rajasthan, which is held by IJDTPL (the “Jaipur-Deoli
NH 12 Project”)
Surat-Dahisar NH 8 toll road: a 239.00 km section of NH 8 between
Surat in Gujarat and Dahisar in Maharashtra, which is held by ISDTPL (the
“Surat-Dahisar NH 8 Project”)
Tumkur-Chitradurga NH 4 toll road: a 114.00 km section of NH 4
between Tumkur and Chitradurga in Karnataka, which is held by ITCTPL
(the “Tumkur-Chitradurga NH 4 Project”)
Omalur-Salem-Namakkal NH 7 toll road: a 68.625 km section of NH 7
between Omalur and Salem and Namakkal in Tamil Nadu, which is held
by MITPL (the “Omalur-Salem-Namakkal NH 7 Project”)
Talegaon-Amravati NH 6 toll road: a 66.73 km section of NH 6 between
Talegaon and Amravati in Maharashtra, which is held by ITATPL (the
“Talegaon-Amravati NH 6 Project”, and together with the Surat-Dahisar
NH 8 Project, the Tumkur-Chitradurga NH 4 Project, the Bharuch-Surat
NH 8 Project, the Jaipur-Deoli NH 12 Project and the Omalur-Salem-
Namakkal NH 7 Project, forms the “Initial Road Assets”).
May 02, 201
3
IRB InvIT Fund| IPO Note
Exhibit 1: Sponsor’s Holdings in the Project SPVs pre-Formation Transactions
Source: Offer Document, Angel Research
Exhibit 2: Structure of the Trust
Source: Offer Document, Angel Research
May 02, 201
4
IRB InvIT Fund| IPO Note
Exhibit 3: Concession Period details of SPV under InvIT Fund
Length
Concession
Concession
Project SPV
(lane Kms)
Period start
Period End
Surat-Dahisar NH 8 Project
ISDTPL
1434
20-Feb-09
19-Feb-21
Tumkur-Chitradurga NH 4 Project
ITCTPL
684
04-Jun-11
03-Jun-37
Bharuch-Surat NH 8 Project
IDAAIPL
390
02-Jan-07
01-Jan-22
Jaipur-Deoli NH 12 Project
IJDTPL
595
14-Jun-10
13-Jun-35
Omalur-Salem-Namakkal NH 7
MITPL
275
15-Aug-06
14-Aug-26
Project
Talegaon-Amravati NH 6 Project
ITATPL
267
03-Sep-10
02-Sep-32
Source: Company, Angel Research
Issue details
The units will consist of fresh issue, aggregating to `4,300cr and Offer for Sale of
3.48cr units (at upper band). The issues would have an option to retain over-
subscription to the tune of 25% of the issue size, thereby reduce outstanding
indebtedness of the project SPV and associated debt servicing cost and will enable
the utilization of internal accruals of the Project SPVs towards distribution and other
business requirement.
Objects of the offer
In accordance with the InvIT Regulations, the Investment Manager (on behalf
of the Trust) intends to utilize the Issue Proceeds after deducting the Issue
related expenses as apportioned to the Trust (the “Net Proceeds”) towards,
investment in the Project SPVs by way of an issue of debt (`4200cr).
General corporate purpose.
Exhibit 4: Utilisation of Net Proceeds
Outstanding as on
Proposed to be
Sr. No.
Particulars
Dec 31,2016
Repaid/Prepaid
(Rs. Cr)
(Rs. Cr)
Repayment/prepayment, in part, of certain loans/facilities availed by the Project SPVs from
1
their respective senior lenders(1)
a
Loans/facilities availed from senior lenders that are not associates of GCBRLMs and BRLM
2121.4
1060.7
b
Loans/facilities availed from senior lenders that are associates of GCBRLMs and BRLM
1391.3
684.1
Prepayment, in full, of the subordinate debt provided to certain Project SPVs by the Sponsor
2
698.5
698.5
and the Project Manager
Prepayment, in full, of certain unsecured loans and advances availed by certain Project SPVs
3
741.7
741.7
from the Sponsor, the Project Manager and certain members of the Sponsor group
Repayment/prepayment, in part, of the balance portion of certain loans/facilities availed by
4
Not Applicable
1015.0
the Project SPVs from their respective senior lenders(4)
Total
4952.9
4200.0
Source: Offer Document, Angel Research
Distribution policy
The Distributions shall be made by the Trust to the Unit holders, from time
to time, in accordance with the Indenture of Trust and the InvIT
Regulations. The Trustee shall make and shall ensure that the Investment
May 02, 201
5
IRB InvIT Fund| IPO Note
Manager declares distributions not less than once every six months in each
Financial Year. However, Unit holders should note that there is no
assurance or guarantee that distributions will be made in any amount or
at all.
The InvIT Regulations provide that not less than 90% of net distributable
cash flows of each Project SPV are required to be distributed to the Trust in
proportion of its holding in each of the Project SPVs subject to applicable
provisions of the Companies Act. Further, not less than 90% of net
distributable cash flows of the Trust shall be distributed to the Unit holders.
Such distributions shall be declared and made not less than once every six
months in every financial year.
The Trust’s first distribution after the date of the listing of the Units will be
for the period from the date of the listing of the Units to the date of 1st half
year financials. The Trustee will make such distribution within 15 days of
such date and no later. Subsequent distributions shall take place on semi-
annual basis with the amount calculated as at March 31 and September
30 each year for the six-month period ending on each of the said dates. In
the event, if distributions are not made within 15 days of declaration, the
Investment Manager shall pay interest at the rate of 15% per annum until
the distribution is made to the Unit holders.
The Net Distributable Cash Flows of the Trust is substantially based on the
cash flow to be generated from the underlying operations undertaken by
the Project SPVs. The cash flow will be received by the Trust in the form of
dividends and proceeds from capital reduction from the Project SPVs,
subject to the provisions of the Companies Act; and interest accrued on
and principal repayment upon repayment of the debt availed by each of
the Project.
SPVs from the Trust. For further information in relation to the proposed
issue of debt.
Cash flows received by the Trust from the Project SPVs will be distributed to
the Unit holders in the form of dividend, interest, buyback of unit and any
other manner as may be permitted under applicable law.
Tax Structure InvITs
Tax on Dividend Distribution: No dividend distribution tax (DDT) is payable by SPV
to the InvIT to the unit holder if dividend is paid out of current income. Dividend
income received by the InvIT is tax free in the hand of InvIT. No DDT is payable by
InvIT while distributing dividend to the unitholders. Dividend income received by
the unit holder is also exempted from tax.
Tax on Interest distribution: Interested taxed only when distributed to the unit
holder. Taxes at applicable rates for the resident unit holder and at 5% on non-
residents. InvIT would withhold 10% for resident holder and 5% for the non
resident holder while distributing interest income.
Tax on Capital Gains: Short term capital gain on sale of units (<3 yrs.) taxed at
15% while long term exempted provided STT is paid.
May 02, 201
6
IRB InvIT Fund| IPO Note
Investment Rationale
Portfolio of income generating assets: Upon completion of the Formation
Transactions, they will own 100% of six Project SPVs. Each of these Project SPVs
owns, operates and maintains a toll-road project in India. The Initial Road Assets
have growth potential due to expected growth in traffic volumes as a result of
regional growth and expected increases in toll fees as a result of inflation
adjustments.
Exhibit 5: Toll Revenues of Project SPVs
Project SPV (` Cr)
2014
2015
2016
9MFY17
ISDTPL Surat-Dahisar NH 8 Project
487.9
554.9
613.5
420.8
ITCTPL Tumkur-Chitradurga NH 4 Project
163.0
184.2
201.9
142.6
IDAAIPL Bharuch-Surat NH 8 Project
166.6
185.7
193.6
133.6
IJDTPL
Jaipur-Deoli NH 12 Project
34.2
101.4
120.6
81.2
MITPL
Omalur-Salem-Namakkal NH 7 Project
61.3
75.6
74.9
54.4
ITATPL
Talegaon-Amravati NH 6 Project
26.4
46.1
47.2
34.6
Total
939.4
1,148.0
1,251.7
867.1
Source: Offer Document, Angel Research
Diversified road project portfolio and revenue base to provide an edge: The
geographical diversification of the Initial Road Assets has improved due to
experience and expertise, including their ability to evaluate, acquires, operate and
maintain new projects. The Initial Road Assets were generally located near or
connecting major cities in India like, the Surat-Dahisar NH
8 Project in
Maharashtra and Gujarat, which is their largest Initial Road Asset, based on
revenue as of December 31, 2016, and the Bharuch-Surat NH 8 Project in the
State of Gujarat is located along NH 8. The NH 8 passes through Vapi, Valsad
Navsari, Surat, Ankleshwar, Vadodara and Ahmedabad and forms a part of the
stretch of national highways that connect New Delhi and Mumbai.
The geography and temporally diverse project portfolio provides them with an
advantage in capitalizing on new opportunities available in the roads and
highways sector. That type of diversification strengthens their business by reducing
their reliance on any specific region or project and reducing the potential impact
on the business of any economic slowdown or force majeure event in any
particular region or with respect to any particular project.
Experienced Sponsor, Investment Manager and Project Manager with
consistent track records: The Sponsor is one of the largest infrastructure
development and construction companies in India in terms of net worth in the
roads and highways sector with a large project portfolio of 8,183 Lane kms of
roads and highways in operation, under construction or under development,
excluding the Initial Road Assets, as of December 31, 2016. The Sponsor's BOT
project portfolio includes large road and highway BOT projects, such as the
Yashwantrao Chavan Mumbai-Pune Expressway project and Mumbai Pune section
of NH 4, phase II of the Mumbai-Pune section of NH 4, the Amritsar-Pathankot
section of NH 15, the Ahmedabad Vadodara section of NH 8 and the Ahmedabad
Vadodara Expressway, the Goa Karnataka Border-Kundapur section of NH 17, the
May 02, 201
7
IRB InvIT Fund| IPO Note
Solapur Yedeshi section of NH 211, the Yedeshi-Aurangabad section of NH 211
project, the Agra-Etawah section of NH 2 and the Kaithal-Rajasthan Border
sections of NH 152 / 65. The Sponsor has experience in developing roads and
highways infrastructure and has received various industry awards and recognitions.
The Investment Manager has approximately 18 years of experience in operating a
road BOT project and is also experienced in developing, operating and
maintaining toll plazas. The Investment Manager is a wholly-owned subsidiary of
the Sponsor.
The Project Manager is a wholly-owned subsidiary of the Sponsor, having executed
a majority of all EPC work being undertaken by the Sponsor. It also acts as the
operations and maintenance contractor for substantially all of the Sponsor's
projects, including the Initial Road Assets. The Project Manager has experience in
the execution of construction work for roads, highways, and other relevant
structures and has a track record of constructing over 2,500 kms of roads and
highways as of Decemeber 31, 2016. The Project Manager has a team of
approximately 3,296 skilled and semi-skilled people to support its operations as of
December 31, 2016.
Low leverage upon Listing to provide debt capacity for financing future assets
The Net Proceeds will be used to repay and replace a significant portion of the
Project SPVs' existing indebtedness. The resulting low leverage will provide them
with debt capacity to grow their business, including financing future acquisitions.
They intend to finance future development and acquisitions through the issuance of
additional Units, as well as through bank borrowings and other indebtedness,
subject to the borrowing limits contained in the InvIT Regulations. Its low leverage
will provide a significant advantage over its competitors in developing and
acquiring projects that meet investment objectives.
Efficient management team with industry experience
An Investment Manager who has managerial and operational experience in the
roads and highways sector will be giving advice. Their projects will be managed by
qualified personnel of the Project Manager. They believe that the experience and
leadership of these teams will contribute to their growth and success and will position
the Initial Road Assets to be operated and managed in an efficient manner.
Growth opportunities and access to Sponsor's portfolio
With a great relation with the Sponsor, they will have an access to an important
pipeline of potential acquisitions. Pursuant to the ROFO/ROFR Deed and the
Future Assets Agreement, the Sponsor has agreed to provide them with rights of
first offer and first refusal with respect to certain toll-road assets located in India,
which will be owned or acquired or developed by the Sponsor or its existing or
future subsidiaries. The valuation for the toll-road assets under the Future Assets
Agreement will be based on the average of the valuations provided by two
independent valuers, one appointed by the Sponsor or its subsidiary, and the other
by the Trust (acting through the Trustee) and the Investment Manager.
Outlook and Valuation
In terms of valuations, we have considered the conservative traffic growth (3-5%)
and higher discounting factor of around ~11% which results in the returns of 25-
30% on the enterprise value. Further, reduction in cost of debt and increase in
traffic growth will lead to further higher returns. Hence, considering the above
positives coupled with attractive valuations, we recommend a SUBSCRIBE on the
issue
May 02, 201
8
IRB InvIT Fund| IPO Note
Key risks
The debt financing proposed to be provided by the Trust to each of the
Project SPVs comprise of certain unsecured, interest-free and interest-
bearing loans
Certain of the Project SPVs have experienced losses in prior years
May not be able to make distributions to Unit holders or the level of
distributions may fall
Decline in traffic volumes would materially and adversely affect the
business prospects, financial condition & results of operations and ability
to make distributions to Unit holders
IRB InvIT may be subject to increase in costs, including operation and
maintenance costs, which cannot be recovered by increasing toll fees
under the concession agreements
May 02, 201
9
IRB InvIT Fund| IPO Note
Income Statement
Particulars (Rs. Cr)
FY14
FY15
FY16
9MFY17
Revenue from operations
745
900
987
735
% chg
-
21%
10%
-
Expenses
Road work and site expenses
48
143
128
101
Employee benefits expense
16
17
21
16
Other expenses
12
12
11
9
Total expenses
76
172
161
126
EBITDA
670
728
826
609
% chg
-
9%
13%
-
(% of Net Sales)
90%
81%
84%
83%
Depreciation and amortisation expenses
356
425
468
320
EBIT
313
303
359
288
% chg
-
-3%
19%
-
(% of Net Sales)
42%
34%
36%
39%
Finance costs
376
445
435
310
Other income
17
16
17
16
PBT
-45
-126
-59
-5
Total tax expenses
2
-2
17
8
Profit/(loss) after tax
-48
-124
-76
-13
% chg
-
160%
-38%
-
(% of Net Sales)
-6%
-14%
-8%
-2%
Source: Offer Document, Angel Research
May 02, 201
10
IRB InvIT Fund| IPO Note
Balance Sheet
Particulars (` Cr)
FY14
FY15
FY16
9MFY17
ASSETS
Property, plant and equipment
4.1
1.4
1.3
1 2.01
Other Intangible assets
13580.6
13414.9
12988.2
12684.7
Intangible assets under development
312.3
1.6
4.1
4 6.81
Financial assets
Investments
0.0
0.0
0.0
0 .04
Loans
43.6
48.3
53.4
6 .54
Other receivables
0.0
0.0
0.0
0.0
Deferred tax assets
44.8
49.2
36.7
6.7
Other non-current assets
3.0
1.1
0.5
2 .11
Current Assets
Investments
0.0
0.0
0.0
12.1
Trade receivables
3.3
2.5
1.8
45.4
Cash and cash equivalent
72.5
82.4
57.9
47.7
Bank balance other than above (iii)
101.3
98.4
102.7
110.5
Loans
0.1
125.3
190.4
198.8
Other receivables
17.1
15.3
13.0
11.6
Current tax assets (net)
3.5
2.2
3.2
2.8
Other current assets
10.7
4.3
9.0
8.4
Total assets
14196.9
13846.9
13462.3
13165.4
EQUITY AND LIABILITIES
Equity
Equity share capital
1111.6
1114.6
1114.6
1114.6
Subordinated debt (in nature of equity)
695.6
698.5
698.5
698.5
Other equity
215.6
91.6
15.2
2.2
Total equity
2022.7
1904.7
1828.2
1815.3
Liabilities
Non-current liabilities
Borrowings
4006.9
3868.2
3655.2
3325.7
Other financial liabilities
6959.2
6867.3
6662.6
6254.3
Provisions
121.5
73.5
109.4
148.7
Other non-current liabilities
0.4
0.0
0.0
0.0
Current liabilities
Borrowings
677.8
652.1
643.6
6 ,877.01
Trade payables
7.6
43.0
13.4
1 27.05
Other financial liabilities
383.8
421.0
545.4
9 ,168.71
Other current liabilities
12.9
13.9
3.0
6 .11
Provisions
0.2
0.1
0.1
1 .53
Current tax Liabilities (net)
3.8
3.3
1.4
3 3.05
Total liabilities
12174.1
11942.2
11634.1
11350.1
Total equity and liabilities
14196.9
13846.9
13462.3
13165.4
Source: Offer Document, Angel Research
May 02, 201
11
IRB InvIT Fund| IPO Note
Cash Flow Statement
Particulars (Rs. Cr)
FY14
FY15
FY16
9MFY17
Cash flow from operating activities
Profit/(Loss) before tax
-451.5
-1261.4
-590.6
-54.1
Adjustments to PBT to net cash flows
Interest expense
347.4
413.9
398.7
280.0
Depreciation and amortisation expenses
356.4
425.4
467.6
320.4
Dividend income on current investments
0.0
0.0
-0.4
0.0
Interest income
-12.2
-10.1
-9.6
-6.6
Operating profit before working capital changes
646.4
703.0
797.3
588.3
Movement in W.C.
-20.8
-201.9
-228.6
39.6
Cash generated from operations
625.6
501.1
568.7
524.1
Direct taxes paid (net of refunds)
-0.8
-1.3
-7.6
-5.3
Net cash flows from operating activities
624.9
499.8
561.1
518.8
Cash flows from investing activities
Sale proceeds from investments
2.5
0.0
0.0
-12.1
(Purch.)/sale of F. assets incld. CWIP and Cap. Adv.
-513.1
-38.4
-43.2
-17.4
Purchase/Proceeds from mat/redpt of fin. inst.
43.2
2.8
-4.2
-7.8
Dividend income
0.0
0.0
0.4
0.0
Interest received
13.3
8.9
9.9
6.6
Net cash flows from investing activities
-454.0
-26.6
-37.2
-30.6
Cash flow from financing activities
Proceeds from issuance of equity share capital
41.5
2.9
-
-
Proceeds from receipt of subordinated debt
41.5
2.9
-
-
Repayment of long-term borrowings
-8.4
-59.7
-160.7
-240.9
Interest paid
-346.4
-409.5
-387.6
-257.5
Net cash flows from financing activities
-271.8
-463.3
-548.3
-498.4
Net inc/(dec) in cash and cash equivalents
-100.9
9.9
-24.5
-10.2
Cash and cash equivalents at the beg. of the year
173.5
72.5
82.4
57.9
Cash and cash equivalents at the end of the year
72.5
82.4
57.9
47.7
Source: Offer Document, Angel Research
May 02, 201
12
IRB InvIT Fund| IPO Note
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
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