Bharti Infratel, the tower arm of Bharti Airtel, plans to raise up to $825 million (around Rs4,500 crore) in one of India’s biggest initial public offerings (IPO) in two years, and use the proceeds to fund expansion and acquisitions.
The IPO for 18.89 crore equity shares will remain open on December 11-14. The price band is Rs210 to Rs240 per share. The minimum bid lot has been fixed at 50 equity shares and in multiple of 50 shares thereafter. The discount for retail investors at Rs10 per share will not exceed 5% of the issue.
The company plans to spend Rs1,100-1,200 crore in the next two years towards capex.
"India is the only country where this industry has flourished as the business model is focused on sharing and the prospects are good," Akhil Gupta, deputy Group CEO and MD, Bharti Enterprises, said.
The company said after investing a large sum in buying 3G spectrum, telecom firms would expand data services on 3G and 4G networks, which would help tower companies that rent infrastructure to operators.
"Data traffic for Airtel has been growing 26% quarter on quarter (qoq), up 60% in the last six months. For Idea, data traffic has been growing at the rate of 22% qoq. We have also seen a CAGR of 9.6% growth in tenancies in the last three years. This is a clear indicator that the scope for more towers is increasing," said Devender Singh Rawat, CEO, Bharti Infratel.
The company said it was open to acquisitions in India, as well as globally.
Rakesh Bharti Mittal, vice chairman and MD, Bharti Enterprises, said, "Based on the positive feedback we have received for the IPO, we believe this will pave the way for more IPOs in the coming year."