Reliance Communications' subsidiary Infratel files Red Herring draft with SEBI

04 February 2008

Reliance Infratel Ltd subsidiary of Reliance Communications Ltd today filed its draft Red Herring prospectus with Securities and Exchange Board of India for an initial public offering of 89,164,100 equity shares of Rs5 each for cash at a premium to be decided through the 100 per cent book building process.

The issue will constitute 10.05 per cent of the post-issue paid-up equity capital of Reliance Infratel Ltd.

The company proposes to issue at least 60 per cent of the issue to the public on a proportionate basis to qualified institutional buyers (QIBs), of which 5 per cent will be available for allocation to mutual funds only and the remaining QIB portion will be available for allocation to all the QIB bidders, including mutual funds, subject to valid bids being received at or above the issue price.

The company says, "not less than 30 per cent of the issue shall be available for allocation on a proportionate basis to the retail individual bidders and not less than 10 per cent of the issue shall be available for allocation on a proportionate basis to non-institutional bidders, subject to valid bids being received at or above the issue price".

Reliance Infratel is part of the Reliance Anil Dhirubhai Ambani group and builds, owns and operates telecommunication towers and related assets at designated sites to provide these passive telecommunication infrastructure assets on a shared basis to wireless service providers and other communications service providers under long-term contracts.

These customers use the space on Reliance Infratel's telecommunication towers to install their active communication-related equipment to operate their wireless communications networks.