Bharti Airtel's tower business unit Bharti Infratel has received Rs 651.7 crore from 18 anchor investors, including Morgan Stanley and Sundaram MF, ahead of the Rs 4,500-crore public offer which opens on Tuesday.
New Delhi: Bharti Airtel's tower business unit Bharti Infratel has received Rs 651.7 crore from 18 anchor investors, including Morgan Stanley and Sundaram MF, ahead of the Rs 4,500-crore public offer which opens on Tuesday.
The company has priced shares for the anchor investors at Rs 230 a piece and allocated 2.83 crore shares (15 percent of the issue size) to them, Bharti Infratel said in a statement Monday.
The anchor investors include AllianceBernstein, Battery March, Clough capital, Columbia Wagner, Morgan Stanley, Route One Capital, Sundaram MF, Wellington among others, it added.
The Sunil Bharti Mittal led-company plans to raise Rs 4,533.60 crore, biggest from public issue in two years after state-run Coal India's offer in October 2010.
The issue comprising 18.89 crore equity shares will open for retail investors tomorrow in the price band of Rs 210-240 per share. The issue will close on December 14.
At the upper end of the price band, Bharti Infratel would raise about Rs 4,533.60 crore, while at the lower end it could end up with Rs 3,966.90 crore.
IPO comprises a fresh issue of about 14.62 crore equity shares, and an offer for sale of over 4.26 crore equity shares by some shareholders.
The equity shares are proposed to be listed on the Bombay Stock Exchange and National Stock Exchange.
Bharti Airtel, which owns about 86 percent of Bharti Infratel, is not participating in the share sale.
The company has said the proceeds from the IPO will be used to fund its expansion and future acquisitions.
Success of this IPO would be critical for the market, which has seen drying up of public offers due to subdued sentiment and slowing economy for over a year.
The joint book running lead managers to the issue are DSP Merrill Lynch, JP Morgan India, Standard Chartered Securities (India) and UBS Securities India.
The issue's lead managers are Barclays Securities (India), Deutsche Equities India, Enam Securities, HSBC Securities and Capital Markets (India) and Kotak Mahindra Capital Company.
The co-book running lead managers to the issue are BNP Paribas, DBS Bank, HDFC Bank and ICICI Securities.
Bharti Infratel is the first tower company to come out with an IPO. Other players in the tower business include Anil Ambani -led Reliance Infratel and Viom Networks - a joint venture between Tata Teleservices and Kolkata-based Quippo Infrastructure.
Reliance Infratel had also planned to come out with a public offer, which would have raised about Rs 6,000 crore. However, the plan was scrapped.