IL&FS Trans valuations score over IRB Infra: Angel Broking

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Angel Broking has come out with a research note on IL&FS Transportation Networks' (ITNL) IPO. Owing to relative attractive valuations, the broking firm has recommended a subscribe view on the IPO.

ITNL will raise upto Rs 700 crore through its IPO, which will close on March 15. The price band is at Rs 242-258 per share.

The report says, "The UPA government is focusing on infrastructure development as one of its key action areas. In line with this, investments to the tune of Rs 3 lakh crore have been allocated for the Roads Sector in the Eleventh Five-Year Plan. Such sectoral allocation coupled with Kamal Nath's ambitious target of constructing 20km/a day highlight the government's serious intent of achieving its set targets. Moreover, the recently announced capex plans by global Auto majors along with robust Auto sales numbers necessitate development of the road infrastructure in the country. Against this backdrop of such political and corporate actions shaping up, we believe that the infrastructure players involved in Road development, ownership and operation and maintenance would emerge major beneficiaries."

"ITNL's IPO, we believe is reasonably priced considering the emerging growth opportunities, its strong portfolio of assets and sound parentage. Further, on comparative valuations, ITNL (based on the limited information provided in the RHP) scores over IRB Infra. Hence, owing to relative attractive valuations, we recommend a subscribe view on the IPO," according to Angel Broking report.

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