India's largest owner of road assets' shares jumped on news of company's prospective fund raising plans

IL&FS Transportation Networks, India's largest owner of road assets, jumped on news that the company would consider floating a Rights Issue to raise funds for newer projects at a time when the government has raised its focus on the roads sector.

ITNL has grown into the largest build, operate and transfer (BOT) road asset owner in India with approximately 13,100 lane kilometer (km) in its portfolio.

ITNL said its board would meet on August 26 to finalise the details of the proposed rights issue. As a consequence, ITNL rose 2.30 rupees, or 2 percent, to 119.50 rupees on the National Stock Exchange where 3.73 lakh shares were traded compared with a 5-day average of 7 lakh shares.

Recently, ITNL said its first quarter profit crashed 97 percent to 2.9 crore rupees compared with 137.7 crore rupees in the same quarter a year ago. Sales rose 5 percent to 1,644.4 crore rupees during April-June compared with 1,564.2 crore rupees in the year ago period.

ITNL's market capitalisation has slumped 45 percent in the past one year to 2,967 crore rupees.

(Image credits: Indiatimes)