Bharti Airtel Confirms Stock Market Listing for Towers Subsidiary
Published on: 30th Nov 2012
Note -- this news article is more than a year old.
India's Bharti Airtel has confirmed that the stock market floatation of its towers subsidiary, Bharti Infratel will launch next month.
The sale of a 10% stake in the firm is expected to raise between Rs 3,966.90 crore to Rs 4,533.60 crore for the company -- around US$800-$900 million.
The proceeds from the IPO will be used to fund its expansion and future acquisitions, the company said.
Bharti Infratel has more than 34,000 towers in operation, while it holds 42 percent stake in Indus Towers, which has over 100,000 towers in India. Bharti Airtel and Vodafone each own 42 percent stake in Indus Towers, while Idea Cellular owns 16 percent.
The proposed listing constitutes a fresh issue of equity shares by Bharti Infratel and an offer for sale portion by the other shareholders in the company, Compassvale Investments, GS Strategic Investments, Anadale and Nomura Asia Investment.
Bharti Airtel owns around 87% of the Infratel subsidiary confirmed that it would not buy shares when they are listed, thus diluting its stake in the firm.