9th Aug 2021 11:43
(Alliance News) - Infrastructure India PLC on Monday said its largest asset has suffered construction and regulatory delays, and it is exploring alternative sources of financing after restructuring talks ended.
Shares were down 32% to 0.88 pence in London.
The AIM-listed investment fund has a portfolio of Indian energy and transport assets. Its largest asset, the rail freight company Distribution Logistics Infrastructure Ltd, "sustained delays in construction and completion schedules, delays with regulatory approvals due to government bottlenecks and irregular and lumpy volumes as a result of 15 months of severe market turbulence."
Labour shortages were "the most significant challenge for construction", particularly during India's wave of Covid-19 in April and May, the company said.
Restructuring talks with a third party which would have provided extra cash have ended without a deal, Infrastructure India said in a liquidity update. As a result, funds designated for capital expenditure have been diverted to working capital and debt servicing needs.
Infrastructure India had USD4 million cash on July 31, amounting to five to seven months of runway. The company said it is "exploring alternative sources of financing with third parties."
Hydro assets performed as expected, with limited impact from Covid-19, the company said.
By Ivan Edwards; [email protected]
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