Bharti Infratel, a subsidiary of Bharti Airtel, has filed draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) seeking permission to launch an initial public offer (IPO) to raise about Rs.5,500 crore.
While some existing investors will exit through this IPO, the company will raise additional capital by offering fresh equity shares.
“The issue constitutes a fresh issue of equity shares by Bharti Infratel, and an offer for sale (OFS) portion by Compassvale Investments Pte Ltd., GS Strategic Investments Ltd., Anadale Ltd. and Nomura Asia Investment (IB) Pte. Ltd.,” Bharti Airtel said in a filing to the stock exchanges. Bharti Airtel’s directors had decided not to participate in the offer for sale of equity shares in the proposed issue of its subsidiary, the company said.
Bharti Airtel share closed with a gain of 0.57 per cent at Rs.255.10 on the Bombay Stock Exchange. Bharti Infratel has more than 33,000 towers in operation. The players in business include Reliance Infratel and Viom Networks. None of India’s tower companies are listed.