Patel Infrastructure Limited has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to float an initial public offering (IPO). The company has proposed the sale of shares worth Rs 4 billion in the IPO. Through this move, the company will dilute 20-22 per cent of its stake. The IPO is being managed by SBI Capital Markets and IIFL Holdings. Patel Infrastructure plans to use Rs 1.61 billion of the net proceeds to part-finance the Cholopuram-Thanjavur project, which is being implemented on the hybrid annuity model (HAM) by Patel Cholopuram-Thanjavur Highway Private Limited. Further, the company will use Rs 0.45 billion to purchase construction equipment, Rs 1 billion for incremental working capital requirements and Rs 0.25 billion for repayment and prepayment of debt. The balance amount will be used for general corporate purposes.