New Delhi: Bharti Infratel Monday fixed the issue price near the lower end of the band at Rs 220 per share, raising more than Rs 4,118 crore in the biggest IPO in over two years.
Bharti Infratel, the tower arm of telecom major Bharti Airtel, has fixed the price for its IPO at Rs 220 per share for institutional investors, while giving a discounted price of Rs 210 per piece for retail investors, who accounted for only 19 percent of the bids.
"Bharti Infratel has fixed the issue price at Rs 210 per equity share for retail investors and Rs 220 for other investors for its initial public offer of 18.89 crore equity shares of face value of Rs 10 each," the company said in a statement.
With sale of 18.89 crore shares, the company has raised Rs 4,118.01 crore, including about Rs 1,388 crore from retail investors and Rs 2,078 crore from other investors such as QIBs and HNIs.
The company plans to use the proceeds from the IPO to fund its expansion and future acquisitions.
The company has reserved 6.61 crore shares for retail investors and 9.44 crore scrips for others.
From 18 anchor investors, Bharti Infratel had raised Rs 651.7 crore. It allocated 2.83 crore shares at a price of Rs 230 apiece to them.
Bharti Airtel, which owns about 86 percent of Bharti Infratel, did not participate in the share sale.
Bharti Infratel IPO is the biggest from public issue in two years after state-run Coal India's initial public offer raised about Rs 15,500 crore issue in October 2010.
Last week, the government raised about Rs 6,000 crore in NMDC by way of an offer for sale (OFS).
The equity shares are proposed to be listed on the BSE and the National Stock Exchange. Although the company gave no date for the listing but, sources said that it is likely later this month.
Shares of Bharti Airtel settled for the day at Rs 300.45, down 3.69 percent from its previous close on the BSE.
The Sunil Bharti Mittal led-company which had priced the share sale in the range of 210-240 per share was subscribed 1.3 times. The issue was open from December 11-14.
Of the total shares reserved for retail investors, there were bids for 19 percent, while non-institutional investors category was subscribed 29 percent.
On the other hand, the Qualified Institutional Buyers (QIBs) book, was subscribed 2.84 times.
According to the statement, while the book building process had discovered a price of Rs 230 per share, "being investor friendly, the board of the company decided to price the issue at Rs 210 per equity share for retail investors and Rs 220 for the QIBs (Qualified Institutional Buyers), HNIs and others".
At the upper end of the price band, Bharti Infratel was to raise about Rs 4,533.60 crore, while at the lower end it could end up with Rs 3,966.90 crore.