Lanco Infra achieved financial closure for two road projects.

Lanco Infratech shares are trading at Rs.459. Lanco Infratech Ltd has
announced that the financial closures for the two road projects awarded
by National Highways Authority of India (NHAI) to LANCO at Karnataka to
be developed on Build-Operate-Transfer (BOT) basis have been
successfully achieved.

The debt requirement for these projects has been tied up with State Bank
of India and its Associate Banks with State Bank of India being at the
lead. The two road projects are the 81 Km Bangalore-Hoskote-Mudbagal
stretch on National Highway 4 and 82 Km Neelamangla — Devihalli stretch
on National Highway 48. The project involves six laning of 16 Km stretch
and four laning of the remaining stretches. The total project cost is
estimated at Rs 13,480 million.

The concession periods are 20 and 25 years for the two projects
respectively including 30 months of construction period. The contracts
were awarded through a competitive bidding process. The projects would
be financed through a mix of Equity, Debt and Grant from NHAI.At
present, the power portfolio includes an operating capacity of 519 MW
and additional capacities under construction aggregating to more than
3,400 MW with plans under advanced stages of finalization for beginning
of construction of another 3600 MW. The construction and EPC wing has an
order book worth Rs 114 billion.

Bloglines - Stock Idea - Aban Offshore

Bloglines user raman_bel@yahoo.com has sent this item to you, with the following personal message:

Buy

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Stock Recommendations for Indian Share Markets

Stock Idea - Aban Offshore By Gemini Recommendation: Buy (again!!!) CMP = Rs 3,780 Price target: Rs 5,420 Key points: Aban Offshore has received a letter of intent from Oil and Natural Gas Corporation for the deployment of drillship, Aban Ice, on a three-year contract worth Rs 657 crore. As per the new contract, the day rate works out to around $154,000, which is much higher than our estimate of $110,000 per day. The ongoing contract, which was at a rate of $43,000 per day, is set to expire in March 2008. As can be noticed, the new rates are almost 258% higher than the previous contract, clearly indicating the strong uptrend in the day rates.  Also, it is important to note that the contract has been struck in rupee terms, protecting the company against any fluctuations on the foreign exchange front. I would also factor in the impact of this contract at higher day rates for Aban Ice in our next update, along with the impact of the recent acquisition of an offshore rig, Bulford, for a consideration of $211 million. All this would add to the company's growth from the next year onwards. Furthermore, the company might also announce its contract for the newly-built jack-up rig, Aban VIII, in February 2008, which may provide further upside to our numbers. It should be noted that the current correction in its stock price should be used as an opportunity to buy the stock. At the current market price of Rs 3,780, the stock is discounting its FY2009E earnings by 9.7x and FY2010E earnings by 7.5x. I believe that its valuations are extremely attractive at the current levels. Also, the listing of its subsidiary would act as an important trigger for the stock going ahead. I maintain Buy recommendation on the stock with a price target of Rs 5,420 with a time frame of 9-12 months.