India’s leading telecom service provider, Bharti Airtel has said that it is planning to get its tower unit, Bharti Infratel listed on the stock market soon.
According to a report, the company has started working on the draft red herring prospectus and it might file the draft with the market regulator, SEBI within August or in the beginning of September. The shares are expected to be listed on the stock exchange by December subject to regulatory approvals.
The company is reportedly aiming to raise Rs 4,000-4,500 crore and allow also an exit point to PE firms. If the company gets approvals for the listing, it will be the biggest IPO after Coal India's Rs 15,000-crore issue in the beginning of 2010.
The telecom service provider, which is competing with a host of several other telecom operators in the country’s crowded telecom industry, is looking to reduce its debt burden. Bharti Airtel has a debt of $12.7 billion and the listing will help the company reduce some debts.
Bharti Infratel has already invited global investment banks for presentations on Monday and will soon finalize merchant bankers for the issue soon. Standard Chartered Bank is likely to be involved in the issue.