NEW DELHI, 10 October 2016 : Sonalika tractors, brand name of International Tractors Ltd (ITL) will be filing to initial public offering (IPO) in this month, according to industry sources.

The company will be filing for draft red herring prospectus for an initial share sale with the regulator by this month.

The company is looking to raise $300 million (Rs 2000 crore), which will be invested in further expansion of company's plant that will produce 100,000 tractors, as against the current production capacity of 40,000 units per annum.

It was reported in media last year that ITL has started discussion with player to enter the market with an IPO.

Looking at the central government's commitment in investing in agricultural equipments market and taking it to farmers, this is the right time to enter the market, an investment banker who wish not to be named told AgriTimes.

Many private players are nor eyeing the agri pie in their portfolio, which has a long term gain and can provide good returns too in medium and long term basis, the banker added.

According to an estimate, in 2014-15, tractor sales in India fell 13 per cent from a year ago to 551,463 units as a poor monsoon led to reduction in farm incomes. Sales fell in 2015-16 as well, declining around 11 per cent to 493,764 units.