Reliance Infratel May Place Another 5% Stake In Pre-IPO Deal: Report
The IPO-bound telecom tower company Reliance Infratel is selling a 5 per cent stake to certain unnamed US and European investors at a valuation of Rs 50,000 crore, which is interestingly the double of the valuation of the previous pre-IPO deal of Rs 28,000 crore in August last year. Press Trust of India today reported, quoting unnamed company sources, that the company has entered into a deal with some American and European investors for the pre-IPO placement.
In August 2007, the company made a private equity placement of 5 per cent stake for Rs 1,400 crore to a group of institutional investors such as George Soros’s Quantum Fund, HSBC Principal Investments, Fortress Capital, New Silk Route, Galleon, DA Capital and GLG Capital.
Bharti Infratel, the tower arm of Bharti Airtel, had raised capital in multiple rounds from a clutch of investors like Temasek and KKR at an enterprise valuation in the range of $10-12.5 billion. Its final valuation was to be determined on the basis of Bharti Infratel’s actual operating performance in FY 2008-09. This deal was done in Deecmebr 2007 and February 2008.
Reliance Infratel’s IPO has been cleared by market regulator SEBI, and it’s expected to come up with its IPO any time. It will offer about 89.16 million of its shares, comprising 10.05 percent of its post-issue paid-up equity capital.
