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Reliance Infratel eyes $1bn pre-IPO sale
19 January 2010
Reliance Communications in India is in talks with potential investors in its infrastructure company, Reliance Infratel, which is planning an IPO
Indian infrastructure company Reliance Infratel is in talks with potential investors about a pre-initial public offering placement of shares. The unit of India’s Reliance Communications is seeking to raise about $1 billion by selling its shares in an initial public offering by selling 10% of its shares.
The proceeds from the sale of 156 million shares will be used to reduce debt and to fund expansion, joint ventures and acquisitions.
The operator of mobile communication towers in India has appointed JM Financial as the lead banker for its IPO. JP Morgan, Enam Securities, Deutsche Bank, ICICI Securities and HSBC are the co-lead managers of the IPO.
Reliance Communications’ share in the tower unit, after the planned offerings in Reliance Infratel, will be down to 80%. The promoters, led by billionaire Anil Ambani, have 67.22% share of Reliance Communications. The company values the tower subsidiary at $10.9 billion after considering the fundraising plans through the offerings. GTB