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IL&FS Transportation Lists At Premium

31 March, 2010

IL&FS Transportation Networks listed at a 11% premium to its issue price of Rs 258/share on debut at BSE and hit a high of Rs 295 before dropping to trade at Rs 277 a piece. At this level all private equity investors in the firm including Bessemer Venture Partners, that picked up 2.41% stake worth Rs 100 crore as pre-IPO investor four months ago, are sitting on gains.

Bessemer, the last financial investor to build an exposure in the company, had invested at Rs 242/share buying the stake from IL&FS Employee Welfare Trust last November. At the current price, Bessemer is sitting on unrealised gains of 14% on its four-month-old investment.

Other PE investors in the company include Goldman Sachs Strategic Investments and Standard Chartered IL&FS Asia Infrastructure Growth Fund, which bought the stake at Rs 100 and Rs 133 per share, respectively.

At the current market price, IL&FS Transportation Networks commands a market cap of Rs 5,390 crore (~$1.2 billion).

The Mumbai-based firm is into project development, implementation, construction management, operations and management of toll roads besides advisory services related to road projects.

It raised Rs 700 crore in the public offering with Enam, Nomura, HSBC InvestDirect and JM Financial as the lead managers. Trinity Capital, which held 2.5% stake in ITNL, exited during the issue. Trinity had picked up the stake for Rs 41.6 crore in late 2006 for a per share price of Rs 100.

ITNL has a portfolio of around 16 road projects across the country, with equity stakes ranging from minority interest to complete 100% holding. The company’s revenues and profit after tax (PAT) have tripled between FY08 and FY09. ITNL had revenues of Rs 1,332 crore and PAT of Rs 27.8 crore for FY09. It also acquired Spanish company Elsamex SA in March 2008 to start international operations.


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