Bharti Infratel IPO may raise up to $825 million: sources

MUMBAI/NEW DELHI Fri Nov 30, 2012 2:00am IST

The sun rises behind a communications tower in New Delhi March 20, 2006. REUTERS/B Mathur/Files

The sun rises behind a communications tower in New Delhi March 20, 2006.

Credit: Reuters/B Mathur/Files

Related Topics

Stocks

   

MUMBAI/NEW DELHI (Reuters) - Bharti Infratel Ltd, the telecommunications tower unit of phone carrier Bharti Airtel (BRTI.NS), is likely to raise up to $825 million in what would be the country's biggest IPO in two years, sources with direct knowledge said.

The company is expected to set a price band of 210 rupees to 240 rupees a share for its IPO, which will be launched on December 10 and close on December 14, said the sources, declining to be named before an official announcement.

The offering - 188.9 million shares or 10 percent of Bharti Infratel - is set to be India's biggest IPO in two years after state-run Coal India Ltd (COAL.NS) raised $3.5 billion in October 2010.

A Bharti Group spokesman was not immediately available for a comment on the price band. The Bharti Infratel management will decide and formally announce the IPO price band on Friday, the sources said.

Bharti Infratel which is controlled by billionaire Sunil Mittal has called a news conference in New Delhi on Friday for the planned IPO.

At the upper end of the price band, Bharti Infratel will raise about 45.3 billion rupees; at the low end, it will raise 39.7 billion rupees.

Bharti Infratel is selling 146.2 million new shares in the IPO, while four of its shareholders including arms of Singapore state investor Temasek and Goldman Sachs (GS.N) are selling 42.7 million shares, according to a regulatory filing.

Bharti Airtel, which owns about 86 percent of Bharti Infratel, is not selling any shares.

Bharti Infratel has more than 33,000 mobile phone masts and also holds a 42 percent stake of Indus Towers, the world's biggest telecoms tower company, with about 110,000 towers in India.

Bank of America Merrill Lynch, J.P. Morgan, Standard Chartered, Deutsche Bank, HSBC, UBS, as well as India's Kotak Mahindra and Enam are advising Bharti Infratel on the IPO. (Editing by Elaine Hardcastle and Steve Orlofsky)

FILED UNDER:

Surprise Rate Cut

Reuters Showcase

Documents' Leak

Documents' Leak

India widens oil leaks probe to defence ministry  Full Article 

Reuters Exclusive

Reuters Exclusive

Payment delays dent India's flagship health, AIDS programmes  Full Article 

Jim O’Neill Interview

Jim O’Neill Interview

'India can become world’s fifth-largest economy by decade’s end'  Full Article 

Food Security

Food Security

India will not cut multi-billion dollar food handout programme - PM  Full Article 

Ola's Expansion Drive

Ola's Expansion Drive

Taxi group Ola steps up expansion drive  Full Article 

Sahara Saga

Sahara Saga

Sahara's Grosvenor House hotel in London put up for sale   Full Article 

Suzlon Energy

Suzlon Energy

Suzlon expects to turn profitable in fiscal 2016: chairman   Full Article 

Beef Trade

Beef Trade

Maharashtra clamps down on beef trade through new act  Full Article 

Budget 2015

Budget 2015

Budget announcements and reactions from the industry  Full Coverage 

Reuters India Mobile

Reuters India Mobile

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