foThe International Tractors Ltd, who were the makers of the famous Sonalika Tractors have planned to raise a fund of Rs. 1200 crores in the IPO. People who are aware of the matter have told this to the reporters and requested not to mention their names as they don’t have the rights to say these information out. The official announcement of the company can be expected soon and also the sources have added that the company is well set now for getting into the IPO market and they will surely hit the target, they added.
Third largest tractor maker in India
This Delhi based company is the India’s third largest tractor maker. When one of the sources was saying about the company, he mentioned that the firm is currently into discussion with the investment banks for the past few months. He added that the company is currently into hiring the banks for handling the IPO. The company has planned to hire four banks in total for maintaining the IPO, the source added to the reporters. But the official announcement about the IPO has not been made yet. Since the company is seriously into the IPO process and arrangements now, according to the sources, the official announcement can be expected soon.
Blackstone LP, which is a global major equity, has made an investment of 12.5% in the ITL in the year 2012. This Blackstone is now trying to partially get out of the company by selling some of their shares in this IPO, said the sources. Hence a large portion covered in this IPO will surely be the shares of the Blackstone. The valuation is yet to be done and thus after the valuation, the size of this IPO may vary from around 1000 to 1200 crores. The company has planned to launch the IPO by the second half of next year.
ITL is a zero debt company
So far the ITL has not got any debts in the past and the company is having a cash of Rs. 1400 to 1500 crores in hand. Thus any major happenings in the near future can be met easily by the company without taking any debts. Mr. A. S. Mittal has refused to answer the reporters on any questions on the IPO. Blackstone also has not responded for the mails regarding the IPO details from the reporters’ side.
The total sale of the company has hit Rs. 4000 crores in the year 2014- 2015. According to sources the company has faced a decline in the fiscal year. The plan of IPO was just to sell the shares of the Blackstone and to make some fund for the future utilizations. Thus soon the official announcements for the IPO will be made and also the share price will be announced once the valuation of the shares and the company was over. Since both the ITL and Blackstone have refused answering the reporters on IPO, the matter is quite cloudy now.
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