Buy IVRCL 30 Call Option (25th April 2013 Expiry) @ 0.20 Rupees

[rmani84]

I bought one lot of IVRCL 30 Call Option (25th April 2013 Expiry) @ 0.20 Rupees ....

Investment is just 8000 * 0.20 = 1,600 Rupees.

Why?
IVRCL signing done to sell 3 road assets to Tata. Company to receive 525 Crores (-100 Crores NCDs) + 1100 Crores debt to go off books. Announcement likely to be today.

IVRCL is fundamentally weak with 2500 Crores of debt and the stock has eroded from highs of over 200 Rupees 4 years back, to 20 Rs today ...

Once the news is announced, it can bounce back strongly.

Holding Period: 4 days (We can book profits and re-invest by end of this week).

Since investment is less, no need of stop loss

IVRCL in spot is currently trading at 21.70 Rupees.

One can also go long on IVRCL Futures, if you can afford capital of 50K ...

[rmani84]

news is out,

IVRCL to divest 3 tollways in TN to TRIL Roads
IVRCL Ltd has monetised three road tollways by selling stake to TRIL Roads Private Ltd, a Tata group company.

The deal covering three projects located in Tamil Nadu is estimated to be about Rs 2,200 crore.

This stake sale is part of the Hyderabad-based infrastructure company IVRCL’s Strategic Business Plan to monetise its build, operate and transfer (BOT) road assets. It has signed agreements with TRIL Roads Pvt Ltd to divest stake in these three projects.

The deal envisages divesting its stake in Salem Tollways Ltd, Kumarapalayam Tollways Ltd and IVRCL Chengapally Tollways Ltd.

The total deal consideration will be realised upon satisfaction of certain agreement-related conditions and upon receiving NHAI and the lenders' approvals.

According to the IVRCL management, it plans to divest stake in another three highway and water projects out of its total portfolio of 9 BOT projects. It expects to close deals in the next six months.

Source: IVRCL to divest 3 tollways in TN to TRIL Roads - Business Line

[rmani84]

Update:
IVRCL sold road projects to Tata PE for total debt+equity of 1275 Crores vs project cost of 2200 Crores. Total loss on deal at 1000-1100 post tax on equity.. IVRCL insiders shorting stock..

Next 2 quarters they may report losses in excess of 1500 Crores ...

Above is not my views, but the news going around ...

I exited my position at 0.20 Rupees ... No loss no gain ...