IL&FS unit IPO to raise Rs 700 cr | business | Hindustan Times
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IL&FS unit IPO to raise Rs 700 cr

IL&FS Transportation Networks Limited (ITNL), an unit of IL&FS, will raise Rs 700 crore through an initial public offering (IPO). The company plans to pay off more than half of its loans from the proceeds. The price band is kept between Rs 242 and Rs 258.

business Updated: Mar 08, 2010 21:24 IST
HT Correspondent

IL&FS Transportation Networks Limited (ITNL), an unit of IL&FS, will raise Rs 700 crore through an initial public offering (IPO). The company plans to pay off more than half of its loans from the proceeds. The price band is kept between Rs 242 and Rs 258.

The issue that opens on March 11 and closes on March 15, 2010 will see fresh equity issue by the transportation infrastructure company, along with stake sale by shareholder Trinity Capital. Around Rs 150 crore of the proceeds will be drawn by the exiting shareholder, while the remaining Rs 550 crore will be used by the company to pay off part of the Rs 1,000-crore loan.

“We will raise Rs 700 crore, and the quantity of fresh equity issued will be decided depending on the issue price arrived at,” said K Ramchand, managing director, ITNL. The order book of the company stands at Rs 10,350 crore. The exiting shareholder will put over 42 lakh equity shares on offer.

“We have 11 projects in hand, and they will be completed in 30 months,” Ramchand said. ITNL also plans to foray into urban mass transport projects.