IL&FS Transport Network will mop up Rs 700 crore through initial public offer (IPO). The infrastructure major will put on block about 11.7 per cent of the promoters’ equity. Beside, the existing shareholder Trinity Capital will also offer 4,278,844 equity shares.

The issue opens on Thursday and closes on March 15. The price band for the issue has been fixed between Rs 242 and Rs 258 per share. “We will raise 10 per cent of the total issue via high net-worth individuals, 60 per cent from qualified institutional players and 30 per cent through retail investors,” said K Ramchand, MD of IL&FS.

“We have a total borrowing of Rs 1,000 crore. The-re is a consortium of aro-und seven-eight banks including Axis, Punjab National Bank who lend us money. The funds raised through IPO would primarily be used for repayment of loans,” Harish Mathur, CEO, IL&FS said.

Ramachand said that the company was upbeat about retail investor because road infrastructure was most promising sector at the moment. IL&FS, at present, has an order of Rs 10,000 crore of road and railway projects that are likely to be implemented over next two years. “We have 19 projects in our portfolio right now. Out of that, eight projects have already been completed. For remaining, we are in the process of financial closure,” he added.

The company is now looking at diversifying its portfolio by getting into areas like airports and urban mass transit projects. There will also be inclusion of more build-operate-transfer (toll) model of executing the projects from annuity model. “There are more opportunities in BOT-toll now,” said Ramachand.