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:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

OBAMA'S VISIT

Reuters Showcase

Coal Mining

Coal Mining

India to open coal to commercial mining firms soon, minister says  Full Article 

RBI Loan Rules

RBI Loan Rules

RBI relaxes overseas loan recast rules   Full Article 

E-commerce Firms

E-commerce Firms

Amazon, e-commerce rivals fuel commercial property boom in India  Full Article 

Growth Forecasts

Growth Forecasts

Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll.  Full Article 

Uber is Back

Uber is Back

Uber back in Delhi; govt says must await approval.  Full Article 

Markets at Record

Markets at Record

Sensex rises to record after ECB stimulus programme.  Full Article 

Pharma Sector

Pharma Sector

Ipca Labs hit by FDA ban on plant for standard violations.  Full Article | Related Story 

Forex Reserves

Forex Reserves

India FX reserves at record high as RBI fortifies defences  Full Article 

QE for Euro Zone

QE for Euro Zone

ECB launches 1 trillion euro rescue plan to revive euro economy.  Full Article 

Reuters India Mobile

Reuters India Mobile

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