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:

Reuters Showcase

Land Ordinance

Land Ordinance

Modi says willing to make changes in land decree  Full Article 

Sahara Woes

Sahara Woes

SEBI cancels Sahara's portfolio management licence  Full Article 

Gold Demand

Gold Demand

India gold demand muted, eyes cut in import duty  Full Article 

Coffee's Hot

Coffee's Hot

IPO could value Cafe Coffee Day at $1 billion  Full Article 

Sahara Salaries

Sahara Salaries

Some staff say Sahara has not paid salaries for months   Full Article 

DLF Fined

DLF Fined

DLF says reviewing $8.4 million SEBI penalty  Full Article 

GM Corn

GM Corn

Monsanto says GM corn trial in final stage in India  Full Article 

Rail Budget

Rail Budget

Breakingviews - India goes back to future with $137 bln rail push  Full Article | Full Coverage 

Clean Energy

Clean Energy

India says clean energy a $160 billion opportunity over five years  Full Article 

Reuters India Mobile

Reuters India Mobile

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