Reliance IPO Could Raise $900 MillionRobert Clark
Reliance Communications plans an IPO of its tower group Reliance Infratel in a listing that could yield as much as $900 million.
It has told the Bombay Stock Exchange that it plans to list 10% of the wholly-owned subsidiary.
The IPO could raise $900 million, sources close to the deal told Reuters.
The company had applied for an IPO in February last year but shelved it because of the poor market.
Infratel owns around 50,000 mobile network masts in India. Competition for scarce tower space is likely to soar after the government auctions off 3G licenses nationwide in December, with a new licensee in every circle.
Reliance has estimated that the number of slots will grow from approximately 400,000 in 2009 to 700,000 in 2010 and said it aimed to be the preferred infrastructure provider for new operators.
Infratel posted positive ebitda of 6.75 billion rupees ($141 million) on sales of 14.5 billion rupees last year.