Bharti Infratel Raised 652 Crore Rupees from 18 Anchor Investors before Public Offer

Bharti Infratel, the tower business unit of Bharti Airtel received 651.7 crore Rupees from 18 anchor investors. It is important to note that this investment came ahead of 4500 crore Rupees public offer which opens on 11 December 2012.

The price of shares of the company for anchor investors is 230 rupees per piece and 2.83 shares were allocated to these anchor investors. These anchor investors include Wellington, Battery March, Columbia Wagner, AllianceBernstein, Clough Capital, Route One Capital, Sundaram MF, Morgan Stanley among many others.
 
The company has plans to raise a total of 4533.60 crore, which is the biggest amount from the public issue in 2 years after Coal India’s offer in October 2010.

The issue which includes 18.89 crore equity shares will be opened for retail investors on 11 December 2012, with the price of shares being 210-240 Rupees per share. This issue will be closed on 14 December 2012.

It was finalised that in upper end, Bharti Infratel would be raising around 4533.60 crore and at lower end, it would be close to 3966.90 crore Rupees. The IPO includes fresh issue of around 14.62 crore equity shares. Additionally, there would be sales offer of more than 4.26 crore equity shares by a few shareholders.

It was proposed that the equity shares would be listed on National Stock Exchange as well as Bombay Stock Exchange. Bharti Airtel owns around 86 percent in Bharti Infratel but it would not participate in the sale of shares.
 
The company declared that proceeds from IPO would be used for expansion as well as future acquisitions.

The lead managers of this issue are Kotak Mahindra Capital Company, Deutsche Equities India, HSBC Securities, Barclays Securities (India), Capital Markets (India) and Enam Securities. Co-book running lead managers of the issue are ICICI Securities, BNP Paribas, HDFC Bank and DBS Bank.

It is important to note that Bharti Infratel is the first tower company that has come out with IPO. Other key tycoons of tower business include Reliance Infratel and Vim Networks.