India's Reliance Infratel plans $1 bln IPO -report

MUMBAI, Sept 2 Wed Sep 2, 2009 9:21am IST

Stocks

   

MUMBAI, Sept 2 (Reuters) - The telecoms tower unit of Indian mobile operator Reliance Communications Ltd (RLCM.BO) has revived its initial public offer plan and is looking to raise up to 50 billion rupees ($1 billion), the Business Standard reported on Wednesday.

Reliance Infratel, 95-percent owned by the country's No. 2 mobile firm, aims to sell at least 10 percent stake to help fund its expansion plans, the newspaper said, citing unnamed sources close to the development.

It said the company would file the draft prospectus within a week.

In February last year, the company had filed a prospectus with the regulator seeking to offer 10.05 percent of the post-issue capital, which media reports had said was looking to raise up to 60 billion rupees.

But a slump in equity markets worldwide, including in India, forced Reliance Infratel to shelve the plan.

The Business Standard said the revived IPO would help ease pressure on the company to raise funds from private equity firms, with whom it has in talks.

A Reliance Communications spokesman declined comment on the report.

Indian companies have raised nearly $10 billion in share sales this year, surpassing 2008 volumes, helped by a 62 percent rally in the main BSE index .BSESN this year.

State-owned energy explorer Oil India Ltd is set to launch an IPO next week to raise up to 27.8 billion rupees, while private-sector shipbuilder Pipavav Shipyard Ltd is expected to start roadshows later this month for about 5 billion rupees. ($1=49 rupees) (Reporting by Ami Shah; Editing by Ranjit Gangadharan)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Top News

REUTERS SHOWCASE

Mideast Conflict

Mideast Conflict

Israel says ready to extend short Gaza truce; death toll crosses 1000.  Full Article 

India-WTO Standoff

India-WTO Standoff

India threatens to derail WTO deal, prompts angry U.S. rebuke  Full Article 

Economic Pulse

Economic Pulse

New govt promises low and stable tax regime for economic revival.  Full Article 

IPO Probe Ends

IPO Probe Ends

Facebook says SEC's IPO probe ends, extending WhatsApp closing date  Full Article 

World Stocks

World Stocks

Goldman Sachs downgrades stocks to neutral for short term  Full Article 

Not Wanted

Not Wanted

Hard to see how Russia can ever be let back into G7 club - Canada PM.  Full Article 

Disappointing Results

Disappointing Results

Amazon's far-reaching ambitions, lack of profits, unnerve investors  Full Article 

Global Growth

Global Growth

IMF cuts outlook, warns of stagnation risk in rich nations  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage