Sonalika Group plans Rs 800cr IPO for its tractors unit

Sonalika Group's International Tractors Limited (ITL) is planning an initial public offer (IPO) to raise approximately Rs 800 crore in 2 years.

The company plans to use the proceeds for its expansion and future growth plans. It is also planning to buy a Europe based tractor manufacturer.

ITL is a 30 year old player in the tractor market and boasts of around 35 models in its portfolio. The company has its manufacturing facility in Punjab with an installed capacity of 75,000 units a year.

To meet the increasing demand, Sonalika plans to raise its capacity to 100,000 units in the next 3-4 years with an investment of around Rs 100 crore.

In 2011, ITL sold 42,000 tractors in the domestic market and exported more than 5,000 units to 70 countries including the whole of Africa, Australia and Europe.