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| ITNL to raise Rs 700 cr through IPO |
| Press Trust of India / Mumbai Dec 04, 2009, 20:59 IST |
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IL&FS Transportation Networks (ITNL) today said it would raise Rs 700 crore though an initial public offer (IPO) in Januray for repayment of loan and supporting its growth plans.
"We have filed the Draft Red Herring Prospectus on September 29 with the market regulator Sebi and hope to open the IPO in the next one to one and a half months," ITNL Managing Director K Ramchand told PTI.
ITNL is engaged in building roads on bulid operate and transfer basis. IL&FS holds around 85 per cent stake in ITNL. Trinity Capital, the infrastructure fund that has 2.5 per cent interest in ITNL, would exit by diluting it stake in the IPO.
At present, it is executing 12 projects and the order book stands at Rs 13,000 crore. It would need Rs 2,000 crore equity infusion to execute these projects in three years.
The company has entered into a strategic partnership with Airports Authority of India to venture into the sector and has also been selected for developing a 4.9 km elevated metro rail link project in Gurgaon, Ramchand said.
"We have a standalone debt of Rs 700 crore in the ITNL book as on March 31, 2009 of which we plan to repay Rs 500 crore from the proceeds of the IPO. The debt is short-term in nature carrying interest rate of 10-11 per cent," he said.
ITNL has not decided on the price band or number of fresh shares to be issued but venture capital fund Bessemer India recently picked up 2.4 per cent stake in the firm at Rs 242 a share, valuing the company at Rs 4,200 crore, he said.
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