Bharti Infratel up to $830 mln IPO covered 1.3 times

NEW DELHI Sat Dec 15, 2012 1:39am IST

An advertisement for Bharti Infratel Limited's initial public offering (IPO) is seen posted on a wall as a roadside vendor selling magazines and newspapers waits for customers in New Delhi December 12, 2012. REUTERS/Adnan Abidi

An advertisement for Bharti Infratel Limited's initial public offering (IPO) is seen posted on a wall as a roadside vendor selling magazines and newspapers waits for customers in New Delhi December 12, 2012.

Credit: Reuters/Adnan Abidi

Related Topics

Stocks

   

NEW DELHI (Reuters) - Indian telecoms tower operator Bharti Infratel's share sale to raise up to $830 million was subscribed 1.3 times, a weaker-than-hoped for response to the country's biggest initial public offering in two years.

Bharti Infratel could price the IPO at around 230 rupees per share, near the top end of the indicative price range and at the level it agreed to allot shares to cornerstone investors in the pre-IPO sale, said sources with direct knowledge of the matter.

The company's board will meet soon to take a decision on the final price, said one of the sources. All the sources declined to be named as they were not authorised to speak to the media.

Bharti Infratel, a unit of Bharti Airtel (BRTI.NS), India's top mobile phone carrier, had set an indicative price range of 210-240 rupees for the IPO, which was launched on Tuesday.

The tower operator's offering attracted strong demand from portfolio investors, with the portion reserved for them covered 2.8 times. Just 18 percent of the retail investors' book was bid.

Bharti Infratel's IPO hit the market in what was a busy week of share sales in India with about $2 billion worth of equity deals in a single week, after a lacklustre first half of the year.

Earlier this week, Credit Analysis and Research got bids for more than 40 times the number of shares on offer in an IPO to raise up to $99 million, while jewellery retailer PC Jeweller Ltd's offer of up to $112 million was covered nearly 7 times.

Telecommunications tower operators, which get their revenue from leasing out mobile phone masts to carriers, are going through a challenging time after India's Supreme Court ordered the cellular permits of several carriers to be revoked.

Bank of America Merrill Lynch (BAC.N), JPMorgan (JPM.N), Standard Chartered (STAN.L), Deutsche Bank (DBKGn.DE), HSBC (HSBA.L), UBS (UBSN.VX) as well as India's Kotak Mahindra (KTKM.NS) and Enam advised Bharti Infratel on the IPO.

(Reporting by Devidutta Tripathy and Sumeet Chatterjee; Editing by David Cowell)

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

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

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