ORLANDO, Fla., Sept. 17, 2008 (GLOBE NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, Inc., has initiated coverage on India Globalization Capital, Inc. (AMEX:IGC), a company focused on developing infrastructure in India.
Vivek Srivastava, MBA, RedChip Research Analyst, reported:
"IGC through controlling interests in Sricon Infrastructure Private Limited (Sricon) and Techni Bharathi Limited (TBL), engages in highway and other heavy construction, mining and quarrying, and civil construction and engineering of high-temperature plants."
"Infrastructure development in India has skyrocketed in the past few years, backed by an increased government thrust resulting from population growth and a surge in urbanization. Reflecting India's push to build out its infrastructure, IGC has already amassed an impressive order book, currently standing at $382 million, and is pursuing over $350 million worth of new contracts. With IGC's order book skewed in favor of transportation and construction projects (roads, highways, and heavy construction), the Company is in a favorable position to take advantage of the ongoing infrastructure investment occurring in India," Srivastava continued.
"India's economy is projected to become the third largest in the world, and the government of India expects to spend $475 billion on infrastructure by 2012. A robust order book and strong order pipeline give us confidence that IGC, through its subsidiaries Sricon and TBL, will be able to establish a strong presence in the infrastructure development market in India. We initiate coverage on IGC with a 'Speculative Buy' rating," he concluded.
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Disclosure
Neither RedChip Companies nor the analyst has received any compensation from India Globalization Capital, Inc. (IGC) or any other party for the writing and preparation of this equity research report. The analyst(s) contributing to this report do not hold any shares of the subject securities. This report is based on data obtained from sources we believe to be reliable but is not guaranteed as to accuracy and is not purported to be complete. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make or garner an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities. The subject security is currently engaged by RedChip Companies' investor relations division to provide investor awareness services, which is in no way related to RedChip Companies' Independent Research division. IGC agreed to pay RedChip Companies, Inc. a fee of $10,000 per month and 10,000 shares of common stock under Rule 144 for twelve (12) months of these investor relations services only.