BackITNL to raise `750 crore through rights issue
For the quarter ended 30 June, ITNL reported a consolidated net profit of Rs2.90 crore on a net sale of Rs.1,644.40 crore
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Mumbai: The board of IL&FS Transportation Networks Ltd (ITNL) has agreed to raise up to ₹ 750 crore through a rights issue, the firm informed the BSE on Wednesday.
ITNL is the transportation infrastructure development arm of financier Infrastructure Leasing and Financial Services Ltd (IL&FS). A rights issue is an issue of shares to the existing shareholders of a company, in proportion to their holding of old shares.
“The terms and conditions of the rights issue including the rights entitlement ratio, the issue price, issue size, record date, timing of the issue and other matters shall be decided in consultation with the lead managers to the rights issue," the filing said.
In July last year, the firm’s shareholders approved its move to raise up to ₹ 1,000 crore through the sale of equity shares to institutional investors. Subsequently, the firm had hired four investment banks to raise around $100 million through a qualified institutional placement, Mint reported in February.
For the quarter ended 30 June, ITNL reported a consolidated net profit of ₹ 2.9 crore on net sales of ₹ 1,644.4 crore. As of March 2015, its total consolidated debt stood at ₹ 20.864.61 crore.
ITNL is one of the largest BOT (build, operate and transfer) road asset owners in India. The firm has more than 13,100 lane km in its portfolio across 25 road projects. The project portfolio comprises both toll and annuity-based projects.
The firm has also ventured into other transportation sub-sectors such as railways, urban transportation systems and border check-posts. It is currently developing a metro rail project in Gurgaon, a border check-post project in Madhya Pradesh, and operating a city bus transportation network in the Nagpur, Maharashtra.
The firm also has international operations in the roads sector in Spain, Portugal, Latin America, the United Arab Emirates and China.
Shares of ITNL fell 1.15% to ₹ 88.80 on the BSE on Wednesday, while the benchmark index Sensex declined 1.22% to 25,714.66 points.
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