Reliance Infratel to raise Rs 6,000 cr via IPO
Mumbai: Reliance Infratel, the tower subsidiary of Reliance Communications, has proposed to raise Rs 6,000 crore through an Initial Public Offering (IPO) and has filed the Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI).
The Anil Ambani group company has proposed to offload 10.05 per cent stake to the public, which puts the valuation of the company at around Rs 60,000 crore. The IPO follows that of another group company, Reliance Power, which is to be listed on February 11.
According to the DRHP, Reliance Infratel has proposed to offload 8,91,64,100 equity shares of Rs 5 each at a price that will be decided through the book building process.
The issue proceeds will be utilised to finance development of passive infrastructure sites and for general corporate purposes. Upon the completion of the listing, the company intends to list the shares both on BSE and NSE.
Around 60 per cent of the issue will be allocated to Qualified Institutional Buyers (QIBs), with 5 per cent for mutual funds, and 30 per cent to be allocated on a proportionate basis to retail individual bidders.
Source: BUsiness Standard
