Bharti Infratel’s IPO expected to generate up to Rs 4,500 crore

Bharti Infratel’s IPO expected to generate up to Rs 4,500 crore Sunil Mittal-led Bharti Infratel Ltd is expected to pocket nearly Rs 4,530 crore from its newly announced initial public offer (IPO), for which the company has set a price band of Rs 210 to Rs 240 per share.

Bharti Infratel will offload its 10 per cent share, or sell 188.9 million shares, through the IPO. For retail investors, the issue will be launched on 11th of December and close on 14th of the same month. For anchor investors, it will be launched a day earlier - 10th of December.

At the upper end of the price band, the company will pocket around Rs 4,530 crore; while at the lower end, it will be able to get Rs 3,970 crore.

It may be noted here that Bharti Infratel is the telecommunications tower arm of mobile phone carrier Bharti Airtel.

The IPO, which is going to be India's biggest initial public offer in two years, will value the company between Rs 39,660 crore and Rs 45,330 crore - considerably more than the market capitalization of around 40 per cent Nifty firms at current prices.

It is going to be the biggest IPO in the country since state-run Coal India Ltd's October 2010 offering that had generated nearly Rs 15,000 crore. Since then, companies had been reluctant to issue IPOs as the Indian economy and markets remained sluggish.

Standard Chartered, India's Kotak Mahindra, Bank of America Merrill Lynch, J. P. Morgan, Deutsche Bank, UBS and HSBC are acting as advisers to Bharti Infratel on the IPO.