ITL to offload 5per cent more to investor
International Tractors (ITL), owners of the Sonalika brand, is in talks to offload another 5% as part of its fifth tranche of private placement to an undisclosed financial investor.
By Lijee Philip, TNN |
MUMBAI: International Tractors (ITL), owners of the Sonalika brand, is in talks to offload another 5% as part of its fifth tranche of private placement to an undisclosed financial investor. ITL had earlier placed 5% equity with JM Financial, 10% with Citigroup, 10% with 3i and 12% with Yanmar of Japan. Sources say the signing is due by the month-end. The company has been raising money to fund its aggressive expansion, diversification and acquisition plans. It will tap the capital market by the year-end.
When contacted, ITL Chairman LD Mittal said, “We are already speaking to a few component and tractor firms and have shortlisted a few names. These equity partners add significant value and enhance the growth of our companies.” The total divestment of stakes in ITL, before the 3i deal, fetched Sonalika around Rs 370-400 crore. Sources in the financial institution circuit say the company has been valued at around Rs 2,700-3,000 crore.
The other group company, utility-vehicle maker International Cars & Motors (ICML), is powering its Rhino SUV with a 2-litre Rover engine. The vehicle was earlier powered with the Iveco engine and was discontinued due to its initial teething problems. The company, which has phased out the petrol version of the Rhino, is currently manufacturing only the diesel version, and will launch the CRDi diesel version in October this year. The company plans to double its UV capacity from the current 24,000 units per annum and the tractor unit from 40,000 units per annum.
As the company was going slow on the production of the Rhino and facing a massive under-utilisation of capacity, it decided to help Tata Motors, the country’s largest commercial vehicle major, paint around 800-1,000 units of the Ace mini truck a month since the beginning of the year at its Himachal plant. “While it’s true that we have let out a part of our plant to paint the Tata Ace. This is a temporary situation and we are in the process of creating additional capacity for the Rhino,” Mr Mittal said. Tatas, in turn look after our after-sales and service of tractors and utility vehicles in South Africa, Mr Mittal added.
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When contacted, ITL Chairman LD Mittal said, “We are already speaking to a few component and tractor firms and have shortlisted a few names. These equity partners add significant value and enhance the growth of our companies.” The total divestment of stakes in ITL, before the 3i deal, fetched Sonalika around Rs 370-400 crore. Sources in the financial institution circuit say the company has been valued at around Rs 2,700-3,000 crore.
The other group company, utility-vehicle maker International Cars & Motors (ICML), is powering its Rhino SUV with a 2-litre Rover engine. The vehicle was earlier powered with the Iveco engine and was discontinued due to its initial teething problems. The company, which has phased out the petrol version of the Rhino, is currently manufacturing only the diesel version, and will launch the CRDi diesel version in October this year. The company plans to double its UV capacity from the current 24,000 units per annum and the tractor unit from 40,000 units per annum.
As the company was going slow on the production of the Rhino and facing a massive under-utilisation of capacity, it decided to help Tata Motors, the country’s largest commercial vehicle major, paint around 800-1,000 units of the Ace mini truck a month since the beginning of the year at its Himachal plant. “While it’s true that we have let out a part of our plant to paint the Tata Ace. This is a temporary situation and we are in the process of creating additional capacity for the Rhino,” Mr Mittal said. Tatas, in turn look after our after-sales and service of tractors and utility vehicles in South Africa, Mr Mittal added.
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