Sep 2, 2009

Reliance Infratel plans $1 bn IPO: Reports

According to reports, the telecom tower unit of Indian mobile operator Reliance Communications Ltd has revived its initial public offer plan and is looking forward to raise up to Rs 5,000 crore ($1 billion).

Reliance Infratel, 95-per cent owned by the country's No. 2 mobile firm, aims to sell at least 10 per cent stake to use the capital to fund its expansion plans.

The company would file the draft prospectus within a week.

In February last year, the company had filed a prospectus with the regulator seeking to offer 10.05 per cent of the post-issue capital, which according to the media reports stated that the company was looking to raise up to Rs 6,000 crore at that time.

But a slump in equity markets worldwide, including in India, forced Reliance Infratel to shelve the plan.

The revived IPO would help ease pressure on the company to raise funds from private equity firms, with whom it has in talks.

Indian companies have raised nearly $10 billion in share sales this year, surpassing 2008 volumes, helped by a 62 per cent rally in the main BSE index this year.

State-owned energy explorer Oil India Ltd is set to launch an IPO next week to raise up to Rs 2,780 crore, while private-sector shipbuilder Pipavav Shipyard Ltd IPO is expected to start roadshows later this month for about Rs 500 crore.

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