Delhi Metro IPO : Plans an IPO within a year

by khalid on 04/11/2010 · 0 comments

Delhi Metro Rail Corporation (DMRC) have taken in-principle decision in the board to go for IPO within a year. Delhi Metro aimed at raising funds for expansion. DMRC has revenues around Rs 724 crore and a profit of Rs 90 crore. This is the only metro system in world which is in profit. The Delhi Metro is a rapid transit system serving Delhi, Gurgaon and Noida in the National Capital Region (NCR) of India. The network consists of six lines with a total length of 156 kilometres with 132 stations of which 31 are underground. Delhi Metro started its operation in the year 2002 and since then its expanding itself continually.

IPO size is not disclosed by the chairman of DMRC Mr Sreedharan. He confirmed the plan and said that we have appointed consultants who advised an early listing. The chairman 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 there is a need to list ourself in stock market for further expansion of the Metro. 30% 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 from Japan International Cooperation Agency (JICA). To broadbase its revenue stream, the DMRC is also bidding for metro projects in other Indian cities. Delhi Metro has paid back Rs 567.63 crore to JICA by August 2010.

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