IL&FS Transportation Networks Ltd. Wednesday said it had fixed a price band of Rs.240-258 per share for its initial public offer or IPO, which opens for subscription tomorrow.
Managing Director K. Ramchand told reporters in New Delhi that the company was aiming to garner up to Rs.700 crore through the IPO. It expects to raise over Rs.120 crore from anchor investors, who have shown interest in subscribing to the issue.
The offer consists of a fresh issue of equity shares, 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% to 12.6% stake in the company through the IPO, Ramchand said.
IL&FS Transportation would utilize the proceeds from the issue for repayment of loans worth Rs.500 crore and also for future expansion plans.
The company is in the process of developing several infrastructure projects in areas like road, power and renewable energy. This year it plans to bid for 5 to 6 projects and to enter into developing infrastructure of medium sized airports, Ramchand added.
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