Bharti Infratel looking at acquisition opportunities
Kolkata: Telecommunications tower company Bharti Infratel, whose Rs 4500-crore IPO is opening on December 11, Friday said it is looking at acquisition opportunities in India and overseas.
The company, which is the tower unit of telecom major Bharti Airtel, is set to launch its initial public offering (IPO) on December 11 to raise upto Rs 4,533.60 crore.
"We will be looking at any acquisition opportunities which comes our way," Bharti Infratel Chairman Rakesh Bharti Mittal told reporters on the sidelines of a roadshow for its IPO.
He, however, did not divulge details on whether any specific companies are being considered for the acquisition.
The IPO comprises 18.89 crore equity shares and would open for retail investors in a price band of Rs 210 to Rs 240 per share. The issue will close on December 14.
Bharti Infratel CEO DS Rawat said that the proceeds from the IPO would be used to fund expansion plans as well as future acquisitions.
"We plan to install 4813 new towers with an investment of Rs 1,086 crore. Also, we would invest Rs 1,214 crore on upgradation and replacement of existing towers and about Rs 639 crore on green initiatives at tower sites, over the next two and half years," he said.
Mittal said the company is positive on the IPO and was betting big on the growth in data growth in 3G and 4G segments.
Of the total 3,76,000 towers in India, Bharti Infratel has 80,656. Bharti Infratel and Indus Towers have a combined market share of 37.8 percent in the telecom towers space, Mittal said. Bharti Infratel holds 42 percent stake in Indus Towers.
The proposed IPO will be one of the biggest after the state-run Coal India raised Rs 15,475 crore in October, 2010.