ITL defers its proposed IPO for six months

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Chandigarh: International Tractors, the manufacturer of Sonalika brand of tractors, has deferred its proposed initial public offering (IPO) for six months in view of volatility in stock markets, said Sonalika Group Chairman L D Mittal. Last year, International Tractors (ITL)announced that it was entering the capital market during the fourth quarter of the current financial year. It also proposed to raise Rs 800 crore through this issue for expansion purposes. On the question of offloading its stake to a private equity firm, Mittal said that the company was negotiating with three to four international players for diluting five to seven percent stake. He said that the deal would be finalized before the end of March this year. ITL is targeting to achieve a turnover of $325 million by end of this fiscal. Mittal said, "The company is holding talks with an Italian company for manufacturing tractors for it. Under this arrangement, we will be supplying tractors to the company after manufacturing them in our Hoshiarpur plant." Strengthening its foothold in eastern and southern markets, the company has also decided to set up two tractor manufacturing facilities with an estimated investment of $100 million. "In Bihar, we have identified location for our proposed plant where we will manufacture 40,000 units per annum," Mittal said. According to Mittal, as far as southern states are concerned, the company had written to three state governments of Andhra Pradesh, Tamil Nadu and Karnataka for allotting land at favorable rates for setting up a facility.