Thursday, August 2, 2012

Indiabulls Infra Bought by Morgan Stanley


Sameer Gehlaut, Chairman,
Indiabulls Infrastructure & Power Ltd.

By Mohammed K, Special Correspondent:
Thursday, 2nd August 2012, 12:41 AM IST:

Indiabulls Infrastructure & Power Ltd (BSE: 534597, NSE: IBIPL) counter in BSE, on Wednesday, witnessed a large buy of 64.56 lakh shares by the noted FII, Morgan Stanley Asia (Singapore) Pte.

The deal was disclosed at Bombay Stock Exchange after trading closed on Wednesday.

The Morgan Stanley arm bought Indiabulls Infra stock at Rs. 4.62 a share, making the deal worth Rs. 2.98 crore.

The buy quantity of 64.56 lakh shares amounts to 0.51% of the equity base of this Indiabulls group firm. Only buys or sells of 0.50% or higher of the equity base need to be disclosed on the same day, with the buyer or seller identified.

Indiabulls Infrastructure & Power Ltd is a newly listed scrip in both BSE & NSE, and was created through a hiving-off process of the power and infrastructure businesses of Indiabulls Real Estate Ltd (BSE: 532832, NSE: IBREALEST).

The new company, whose stock started trading on Monday, has been basically created as a holding company of the group firm, Indiabulls Power Ltd (BSE: 533122, NSE: IBPOW). It directly holds 44.84% stake in Indiabulls Power.

Before this restructuring in the group, Indiabulls Real Estate, which is a leading Mumbai-based realty firm, has been the main promoter entity of Indiabulls Power.

The hive-off was effected by issuing 2.95 equity shares of Indiabulls Infra, to all holders of Indiabulls Real Estate, for each Indiabulls Real Estate share they owned.

Since the scrip is new, almost all major holders of Indiabulls Infra have come to own it through this hive-off route. 

Largest holders of Indiabulls Infra are The Master Trust Bank Of Japan Ltd A/c HSBC Indian Equity Mother Fund, HSBC Global Investment Funds Mauritius, Macquarie Bank, Copthall Mauritius Investment, Deutsche Securities Mauritius,  Oberon, Dazbog Holdings EFC, Premier Investment Fund, Fidelity Investment Trust Fidelity Series Emerging Markets Fund, Employees Welfare Trust, and Chartered Finance & Leasing.

Interestingly, one of them, Fidelity Investment Trust Fidelity Series Emerging Markets Fund was a major seller of Indiabulls Infra on Wednesday.

This Fidelity arm offloaded 75.17 lakh shares - which was more than what Morgan Stanley bought - at the same rate of Rs. 4.62. At this price, the scrip has run up 15.5% from its listing price of Rs. 4 on Monday.

The long-term fortunes of this scrip is obviously tied to the fortunes of the two power projects that Indiabulls Power is undertaking in Amravati and Nasik in Maharashtra, both of which have made reasonable progress during the last couple of years.

However, the short-term fortunes may be more dictated by the decisions that existing institutional investors like Fidelity will take, and on whether new supportive entrants like Morgan Stanley would emerge in the coming trading sessions too.

Indiabulls Infrastructure & Power has a face value of Rs. 2 and is now trading in the Trade-to-Trade or ‘T’ Group, with full delivery and no day trading possible, much like how new IPO listings trade for the first 10 trading days in India, as per the new regulations.

It has an equity base of Rs. 254.59 crore as of March 2012, and a market capitalization of Rs. 588.11 crore as on Wednesday’s close.

On Wednesday, despite the larger sell by Fidelity, Indiabulls Infra closed trade in BSE at Rs. 4.62, up by 5%, while the key Sensex index closed flat, up by just 0.12%.