Htil To Raise Rs 749-Cr Through Its Ipo

The proceeds of the issue will be utilised to partly finance the company's expansion plans, estimated to cost around Rs 3,485 crore. Including the promoters' contribution of Rs 137 crore to the issue, HTIL hopes to raise Rs 886 crore from the IPO.

Of the remaining portion of the expansion costs, the existing promoters' equity contribution stands at Rs 667 crore, Rs 854 crore has been underwritten by ICICI, Rs 389 crore is expected to be generated from internal cash flows, and Rs 1,078 crore will be financed by the company's vendors.

The company's expansion plans include the laying of 1,600 km of fibre-optic cable in Maharashtra, including 240 km of it in Mumbai, expansion of the company's existing wireless and wireline telecommunications infrastructure, integration of broadband telephony and wireless services, and provision of Internet access.

 

HTIL currently has about 27,000 lines in Mumbai, Navi Mumbai and Pune. By March 2002, the company wants to increase the number to over 2 lakh connections in nine major cities in the Maharashtra Telecom Circle (MTC).

The book-build portion of the issue, through which 90 per cent of the offer will be made available, starts on August 29, and ends on September 5, 2000. The remaining 10 per cent of the offer is included in the fixed portion, which will be open between September 20 and September 25, 2000.

HTIL, which was earlier known as Hughes Ispat, was renamed on April 26, 2000. Although Ispat Industries and its affiliates have a 51 per cent stake in the company, the right to appoint key executives for the company rests with the Hughes Group.