Bharti Infratel to launch IPO on Dec 11, aims to raise `4,534 cr
1 Dec 2012 6:04 AM IST
Bharti Airtel’s tower unit, Bharti Infratel, will launch next month its initial public offer (IPO) to raise up to Rs 4,533.60 crore — possibly the biggest public issue in two years after state-run Coal India Ltd’s (CIL) offer. The Sunil Bharti Mittal-ledcompany said the IPO comprising 18.89 crore equity shares will open on December 11 for retail investors in a price band of Rs 210 to Rs 240 per share. The issue will close on December 14.
At the upper end of the price band, Bharti Infratel would raise about Rs 4,533.60 crore while at the lower end it could end up with Rs 3,966.90 crore. For anchor investors, the issue will open on December 10. The proceeds from the IPO will be used to fund its expansion and future acquisitions, the company said.
The joint book running lead managers to the issue are DSP Merrill Lynch, JP Morgan India, Standard Chartered Securities (India) and UBS Securities India. The issue’s lead managers are Barclays Securities (India), Deutsche Equities India, Enam Securities, HSBC Securities and Capital Markets (India) and Kotak Mahindra Capital Company. The co-book running lead managers to the issue are BNP Paribas, DBS Bank, HDFC Bank and ICICI Securities.
The issue, comprises a fresh issue of about 14.62 crore equity shares and an offer for sale of over 4.26 crore equity shares by certain shareholders. However, Bharti Airtel, which owns about 86 per cent of Bharti Infratel, is not participating in the share sale.
‘India is the only country where this industry has flourished as the business model is focussed on sharing and the prospects are good,’ Bharti Enterprises Deputy Group CEO and MD Akhil Gupta told reporters here on Friday. Asked if the cancellation of telecom licences by the Supreme Court was putting pressure on the tower industry, Gupta said, ‘Our industry does not necessarily thrive on too many number of operators, it thrives on healthy operators.’
He added the reduction in number of operators has given a chance to the existing players who are left in the fray and have more healthy business to invest more money in the roll out. ‘Therefore, I think even from their point of view its a good time,’ Gupta said.
Bharti Infratel has more than 34,000 towers in operation, while it holds 42 per cent stake in Indus Towers, which has over one lakh towers in India.
The proposed initial public offer will be one of the biggest after the state-run Coal India raised Rs 15,475 crore in October 2010. The success of this IPO would be critical for the market, which has seen drying up of public offers due to subdued sentiment and slowing economy for over a year.
At the upper end of the price band, Bharti Infratel would raise about Rs 4,533.60 crore while at the lower end it could end up with Rs 3,966.90 crore. For anchor investors, the issue will open on December 10. The proceeds from the IPO will be used to fund its expansion and future acquisitions, the company said.
The joint book running lead managers to the issue are DSP Merrill Lynch, JP Morgan India, Standard Chartered Securities (India) and UBS Securities India. The issue’s lead managers are Barclays Securities (India), Deutsche Equities India, Enam Securities, HSBC Securities and Capital Markets (India) and Kotak Mahindra Capital Company. The co-book running lead managers to the issue are BNP Paribas, DBS Bank, HDFC Bank and ICICI Securities.
The issue, comprises a fresh issue of about 14.62 crore equity shares and an offer for sale of over 4.26 crore equity shares by certain shareholders. However, Bharti Airtel, which owns about 86 per cent of Bharti Infratel, is not participating in the share sale.
‘India is the only country where this industry has flourished as the business model is focussed on sharing and the prospects are good,’ Bharti Enterprises Deputy Group CEO and MD Akhil Gupta told reporters here on Friday. Asked if the cancellation of telecom licences by the Supreme Court was putting pressure on the tower industry, Gupta said, ‘Our industry does not necessarily thrive on too many number of operators, it thrives on healthy operators.’
He added the reduction in number of operators has given a chance to the existing players who are left in the fray and have more healthy business to invest more money in the roll out. ‘Therefore, I think even from their point of view its a good time,’ Gupta said.
Bharti Infratel has more than 34,000 towers in operation, while it holds 42 per cent stake in Indus Towers, which has over one lakh towers in India.
The proposed initial public offer will be one of the biggest after the state-run Coal India raised Rs 15,475 crore in October 2010. The success of this IPO would be critical for the market, which has seen drying up of public offers due to subdued sentiment and slowing economy for over a year.
Next Story
