IL&FS Transportations IPO to open on March 11

BSE | NSE 01/01/70 Are Mutual Funds betting on ?

IL&FS Transportation Networks (ITNL) announced on Monday that it will raise Rs 700 crore through its initial public offering (IPO), which will open on March 11.

ITNL was incorporated by IL&FS (an infrastructure development and finance company) in 2000, in order to consolidate their existing road infrastructure projects and to pursue various new project initiatives in the area of surface transportation infrastructure.

The price band has been fixed at Rs 242-258. The issue will close on March 15. The company will decide the number of shares to be sold, depending on the demand, Mr K Ramchand, Managing Director, ITNL said.

"At the upper end of the price band there will be a dilution of 11.65% and at the lower end 12.57%," he said.

The offer for sale will include 42.8 lakh shares by Trinoka Trinity Capital (a UK-based fund), Mr Ramchand said.

He added that Rs 530 crore from the funds raised will be used for repayment of half of its debt and the rest for new projects. "We are looking at international airport projects in association with Airports Authority of India. We will bid for such projects at the right time," he said.

The book running lead managers to the issue are Enam Securities, Nomura Financial Advisory and Securities and JM Financial. The co-BRLMs to the issue are SBI Capital Markets and Avendus Capital. The shares will be listed on both the BSE and the NSE.

The QIBs will be allotted 60 per cent of the shares, HNI ten per cent and retail 30 per cent. Mr Ramchand said that the issue will be open to anchor investors on March 10.

Taken from

The Hindu Business Line