PE-backed Bharti Infratel IPO oversubscribed
The $830 million IPO of Bharti Infratel, the Indian telecoms infrastructure subsidiary of Bharti Airtel, was oversubscribed by investors on Thursday. The intended flotation – which has been mooted for more than a year – will be the country’s largest in two years after Coal India raised $3.43 billion in 2010.
The IPO opened for investors on December 11. By 5 p.m. India time on Thursday, the offering was 1.2 times oversubscribed, exchange data showed. The institutional tranche was 2.8 times oversubscribed. The shares were priced at INR210-240 apiece.
The company will list 10% of its expanded share capital, or 188.9 million shares. Of these, 146.23 million will be fresh capital and the rest will be sold by existing investors. The IPO will value the company at as much as $9 billion.
Temasek Holdings, Goldman Sachs, hedge fund Eton Park Capital Management and Nomura are reportedly selling their stakes through the offering.
Bharti Infratel - which is also backed by KKR, India Equity Partners, Axa Private Equity, Macquarie Group, Citigroup, Investment Corporation of Dubai and AIF Capital - owns over 34,000 telecom towers and has a 42% stake in Indus Towers, a joint venture with other telecom groups.
It is currently the largest mobile-phone-services company in India by revenue and users.
Bank of America Merrill Lynch, JPMorgan, Standard Chartered, Deutsche Bank, HSBC, UBS, Kotak Mahindra and Enam are advising Bharti Infratel on the IPO.
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