Bharti Infratel IPO opens on Dec 11, aims to raise Rs 4,534 cr

The Sunil Bharti Mittel led-company said the Initial Public Offer (IPO) comprising 18.89 crore equity shares will open on December 11 for retail investors in a price band of Rs 210 to Rs 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.

For anchor investors, the issue will open on December 10.

The proceeds from the IPO will be used to fund its expansion and future acquisitions, the company said.

"India is the only country where this industry has flourished as the business model is focussed on sharing and the prospects are good," Bharti Enterprises Deputy Group CEO and MD Akhil Gupta told reporters here today.

Asked if the cancellation of telecom licences by the Supreme Court was putting pressure on the tower industry, Gupta said: "Our industry does not necessarily thrive on too many number of operators, it thrives on healthy operators."

He added the reduction in number of operators has given a chance to the existing players who are left in the fray and have more healthy business to invest more money in the roll out.

"Therefore I think even from their point of view its a good time," Gupta said.

Bharti Infratel has more than 34,000 towers in operation, while it holds 42 per cent stake in Indus Towers, which has over one lakh towers in India.

The proposed IPO will be one of the biggest after the state-run Coal India raised Rs 15,475 crore in October 2010.