PE-backed Bharti Infratel completes $763m IPO
Bharti Infratel, the Indian telecoms infrastructure subsidiary of Bharti Airtel, has raised around INR4.17 billion ($763 million) in India’s biggest IPO in two years.
The New Delhi-based business sold 188.9 million shares, with the institutional tranche priced at INR220 apiece and the retail tranche at INR210 apiece. The indicative pricing range was INR210-240.
The IPO opened for investors on December 11. By 5 p.m. India time on December 13, the offering was 1.2 times oversubscribed. The institutional tranche was 2.8 times oversubscribed.
Institutions and wealthy individuals were allocated 148.4 million shares, with 12.2 million shares going to retail investors, according to a regulatory filing. A further 28.3 million shares were sold at INR230 apiece to 18 anchor investors, including Alliance Bernstein and Wellington Management.
The offering, representing 10% of Bharti Infratel's expanded share capital, values the company at around $7.6 billion. The listing provides an exit for Temasek Holdings, Goldman Sachs, hedge fund Eton Park Capital Management and Nomura.
The company is also backed by KKR, India Equity Partners, Axa Private Equity, Macquarie Group, Citigroup, Investment Corporation of Dubai and AIF Capital.
Bharti Infratel, which operates 34,220 towers used by mobile telecom companies, will use part of the proceeds from the sale for dividends and to install new towers and upgrade existing ones. It is currently the largest mobile-phone-services company in India by revenue and users.
The company's consolidated revenues rose to INR94.52 billion for the year ended March, up from INR85.08 billion.
Bank of America Merrill Lynch, J.P. Morgan, Standard Chartered, Deutsche Bank, HSBC, UBS, Kotak Mahindra and Enam advised on the IPO.
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