New Delhi: IL&FS Transportation Networks Ltd today fixed a price band of Rs 240-258 per piece for its initial share-sale offer, which will begin tomorrow.
"We are aiming to raise up to Rs 700 crore through the initial public offer (IPO). The company is expecting to raise over Rs 120 crore from anchor investors, who have shown interest in subscribing to the issue," IL&FS Transportation Networks Managing Director K Ramchand told reporters here.
The offer consists of a fresh issue of equity shares by the company and an offer for sale of 42.78 lakh shares by Trinity Capital. The issue closes on March 15.
"The promoters would be diluting 11.7-12.6 per cent stake in the company through the IPO," Ramchand said.
IL&FS Transportation would utilise the proceeds from the issue for repayment of loans worth Rs 500 crore and also for future expansion plans.
When asked about the retail response the company is expecting, Ramchand said, "The response from retail investors would be promising as road and infrastructure sector has gained momentum in recent times."
The company is in the process of developing several infrastructure projects in areas like road, power and renewable energy. "This year the company would bid for 5-6 projects. Further we are also planning to enter into developing infrastructure of medium sized airports," Ramchand said.
