Rel Infratel, MCX public offers get Sebi nod

While the MCX issue is estimated to be worth around Rs 700 crore, sources said, the Anil Ambani group company was looking to offload a 10.05 per cent stake in Reliance Infratel to raise Rs 5,000-6,000 crore through the IPO.

The volatility in the markets - both domestic and overseas - that started after the Reliance Power's IPO earlier this year has forced many companies to postpone their public offers.

"Both the IPOs deciding to enter the markets seem to be perfectly timed as they may receive a good response from FIIs. Due to a sharp fall in the rupee, foreign investors are preferring to invest in the Indian markets. FIIs who invest now can take home more dollars once the rupee appreciates as they know it well that the current slide in rupee may not continue for long," Deven Choksey, managing director, K R Choksey Shares and Securities.

He, however, added that the issues may not signal a revival of the overall IPO market as investors will be selective in their decisions.

Reliance Infratel, which filed a draft red herring prospectus in February, has received Sebi approval though the timing for the issue is yet to be decided. The company, where Reliance Communications holds a 95 per cent stake, is planning to offer about 89.16 million shares.

The remaining stake is held by private equity investment companies such as Fortress Capital, HSBC, Galleon Group, New Silk Route, GLG Partners, George Soros's Quantum Fund and DA Capital.

At least 60 per cent of the issue will be allocated on a proportionate basis to qualified institutional buyers and not less than 30 per cent will be available to retail individual bidders. Reliance Infratel has over 37,000 towers and is looking at increasing it to 60,000 by the year-end.

The MCX issue is aimed at raising funds to part fund its proposed infrastructure and technological growth. "We have received the final comments of Sebi on our IPO document and we shall decide how to proceed forward after considering all factors and take suitable decision at an appropriate time," said MCX Chief Executive Officer and Managing Director Joseph Massey.

When quizzed about the possible price band and appropriate timing to enter the market Massey said, "We would decide our future course of action. Nothing has been decided, even internally as of now."