Delhi Metro plans IPO within a year

Written by fe Bureau | New Delhi | Updated: Nov 4 2010, 09:18am hrs
The Delhi Metro Rail Corporation (DMRC) is aiming for a market listing, which would help it raise funds for expansion. Managing director E Sreedharan on Wednesday said the corporationwhich created the only profitable metro system in the worldcould go for an IPO in a year.

Sreedharan confirmed the plan at the Idea Exchange programme organised by The Indian Express. Yes, absolutely. We are moving towards that. He added that DMRC has appointed consultants who advised an early listing. However, it was decided to complete the second phase of the Metrolinked to CWGand kick off the third phase before listing. Sreedharan did not offer any figure on the IPO size; however, based on its current turnover, DMRC will be one of the largest infrastructure companies to be listed in India.

DMRC has revenues around Rs 724 crore and a profit of Rs 90 crore. However, Sreedharan said most of the operational profit is now used to repay the loan taken from Japan International Cooperation Agency (JICA) for building the project, leaving little for investment. Hence the need to list. Thirty percent of the total investment for Phases I and II has been raised through equity capital with the central and state governments contributing equal shares, while most of the debt has been sourced as from a clutch of Japanese agencies. To broadbase its revenue stream, the DMRC is also bidding for metro projects in other Indian cities. As of August 7, 2010, Delhi Metro has paid back Rs 567.63 crore to JICA.