IL&FS Transportation settles at 6% premium

At Rs Rs 273.75 on BSE

Shares of IL&FS Transportation Networks settled at Rs 273.75 on BSE, at a premium of 6.10% over the initial public offer price of Rs 258.

The stock debuted at Rs 287, a premium of 11.2% over the initial public offer (IPO) price. On BSE, 1.65 crore shares were traded on the counter. The stock hit a high of Rs 295 and a low of Rs 270.10.

The current price of Rs 273.75 discounts the year ended March 2009 standalone EPS of Rs 2.50 by a PE multiple of 109.5.

IL&FS Transportation Networks (ITNL) had priced the IPO at Rs 258, at the higher end of price band of Rs 242-258 per share price band. The public offer was subscribed 33.42 times. The IPO got bids for 79.26 crore shares as against 2.37 crore shares on offer. The issue remained open between 11 and 15 March 2010.

Category wise data showed that the qualified institutional buyers portion was subscribed 52.60 times, non institutional investors by 39.39 times, and retail individual investors by 4.56 times.

The offer consisted of a fresh issue of equity shares by the company and an offer for sale of 42.78 lakh shares by Trinity Capital.

On 11 March 2010, the company raised about Rs 126 crore by allotting shares to several anchor investors at Rs 258 per share. The anchor investors include Reliance Capital Trustee Company, Axis Mutual Fund, Sundaram BNP Paribas Mutual Fund, Royal Bank of Scotland, HDFC Trustee Company, JF India Fund, Nomura Mauritius, Ward Ferry Management and Jupiter South Asia Investment Company.

The company intends to use the IPO proceeds for repayment of loan and to support its growth plans. The company has debt totaling Rs 1000 crore.

IL&FS Transportation Networks is one of the leading private sector BOT (build, operate and transfer) road operators in India. The company is engaged in the development, operation and maintenance of national and state highways, roads, flyovers and bridges in various parts of India.

The company has a diverse project portfolio, consisting of 17 road projects comprising approximately 9,397 lane kilometers (km), which includes 4,086 lane km under operation and maintenance and 5,311 lane km under development.

IL&FS Transportation Networks reported a net profit of Rs 42.07 crore on sales of Rs 170.67 crore in the year ended March 2009. On a consolidated basis, the net profit was reported at Rs 27.88 crore on sales of Rs 1252.59 crore in the year ended March 2009.