IPO News

Reliance Infratel files DRHP with SEBI for IPO



Posted On : 2009-09-26 09:00:17( TIMEZONE : IST )

Reliance Infratel files DRHP with SEBI for IPO

Reliance Infratel Ltd (the "Reliance Infratel"), a subsidiary promoted by Reliance Communications Ltd, a part of Reliance Anil Dhirubhai Ambani Group, proposes an Initial public offering (IPO) of 15,60,00,000 Equity Shares of Rs 10 each ("Equity Shares") for cash at a premium (the "Issue") to be decided through a 100% book building process. The Net Issue will constitute 10.0% of the post-Issue paid-up equity capital of the Company.

Reliance Infratel has filed its Draft Red Herring Prospectus ("DRHP") with the Securities and Exchange Board of India ("SEBI"). At least 60% of the Net Issue to the public shall be allotted on a proportionate basis to Qualified Institutional Buyers ("QIBs"), of which 5% shall be available for allocation to Mutual Funds only. The remaining QIB Portion shall be available for allocation to all the QIB Bidders, including Mutual Funds, subject to valid Rids being received at or above the Issue Price. The Company may allocate up to 30% of the QIB Portion to Anchor Investors on a discretionary basis. Further, at least 30% of the Net Issue shall be available for allocation on a proportionate basis to the Retail Individual Bidders and at least 10% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders, subject to valid Bids being received at or above the Issue Price.

Reliance Infratel is one of the leading passive telecommunication infrastructure providers in India. Reliance Infratel is a subsidiary promoted by Reliance Communications Ltd, a part of Reliance Anil Dhirubhai Ambani group. The Issue proceeds are proposed to be utilized, inter aria, for repayment of loans, general corporate purposes including meeting capital expenditure, working capital requirements, Strategic initiatives, partnerships, joint ventures and acquisitions.

The Equity Shares of Reliance Infratel are proposed to be listed on the Bombay Stock Exchange Ltd ("BSE") and the National Stock Exchange of India Limited ("NSE").

JM Financial Consultants Pvt Ltd, J P Morgan India Pvt Ltd, Deutsche Equities India Pvt Ltd, Enam Securities Pvt Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, ICICI Securities Ltd, Macquarie Capital Advisers (India) Ltd and UBS Securities India Pvt Ltd are acting as the Book Running Lead Managers (BRLMs) to the Issue Amarchand & Mangaldas & Suresh A. Shroff & Co. is advising the Company whilst Linklaters LLP and Khaitan & Go, are advising the BRLMs in relation to the Issue.

Source : Equity Bulls

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