Angel recommends to ‘Subscribe’ to ITNL IPO
Angel Broking has advised investors to ‘Subscribe’ to the initial public offering of IL&FS Transportation Networks.
By ET Bureau |
MUMBAI: Angel Broking has advised investors to ‘Subscribe’ to the initial public offering of IL&FS Transportation Networks.
ITNL entered the IPO market Thursday to raise Rs 700 crore. It has fixed the price band in the range of Rs 242-258 per share.
It plans to raise upto Rs 700cr via its IPO in a price band of Rs 242-258 implying a fresh issue of 2.5 crore and 2.3 crore at the lower and upper price band, respectively.
Besides the fresh issue Trinity Capital (Two) Limited, would offload its stake of 0.43 crore shares via secondary market sale transaction. The IPO proceeds are intended to be used for pre-payment and re-payment of portion of debt availed by ITNL.
“The UPA government is focusing on infrastructure development as one of its key action areas. In line with this, investments to the tune of Rs 3lakh crore have been allocated for the roads sector in the Eleventh Five-Year Plan. Such sectoral allocation coupled with Kamal Nath's ambitious target of constructing 20km/a day highlight the government's serious intent of achieving its set targets. Moreover, the recently announced capex plans by global auto majors along with robust auto sales numbers necessitate development of the road infrastructure in the country.
Against this backdrop of such political and corporate actions shaping up, we believe that the infrastructure players involved in road development, ownership and operation and maintenance would emerge major beneficiaries.
ITNL's IPO, we believe is reasonably priced considering the emerging growth opportunities, its strong portfolio of assets and sound parentage. Further, on comparative valuations, ITNL (based on the limited information provided in the RHP) scores over IRB Infra. Hence, owing to relative attractive valuations, we recommend a Subscribe view on the IPO,” the recommendation said.
ITNL entered the IPO market Thursday to raise Rs 700 crore. It has fixed the price band in the range of Rs 242-258 per share.
It plans to raise upto Rs 700cr via its IPO in a price band of Rs 242-258 implying a fresh issue of 2.5 crore and 2.3 crore at the lower and upper price band, respectively.
Besides the fresh issue Trinity Capital (Two) Limited, would offload its stake of 0.43 crore shares via secondary market sale transaction. The IPO proceeds are intended to be used for pre-payment and re-payment of portion of debt availed by ITNL.
“The UPA government is focusing on infrastructure development as one of its key action areas. In line with this, investments to the tune of Rs 3lakh crore have been allocated for the roads sector in the Eleventh Five-Year Plan. Such sectoral allocation coupled with Kamal Nath's ambitious target of constructing 20km/a day highlight the government's serious intent of achieving its set targets. Moreover, the recently announced capex plans by global auto majors along with robust auto sales numbers necessitate development of the road infrastructure in the country.
Against this backdrop of such political and corporate actions shaping up, we believe that the infrastructure players involved in road development, ownership and operation and maintenance would emerge major beneficiaries.
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ITNL's IPO, we believe is reasonably priced considering the emerging growth opportunities, its strong portfolio of assets and sound parentage. Further, on comparative valuations, ITNL (based on the limited information provided in the RHP) scores over IRB Infra. Hence, owing to relative attractive valuations, we recommend a Subscribe view on the IPO,” the recommendation said.
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