Bharti Infratel to launch Rs4,000-crore IPO in December

Bharti Infratel, the mobile phone tower arm of Bharti Airtel, may launch its much-awaited Initial Public Offering (IPO) to raise about Rs4,000 crore on 10 December 2012.

The tower subsidiary has received the market regulator Securities and Exchange Board of India's final approval and will open its book for anchor investors on 10 December and for the public from the next day, according to various media reports.

Bharti Infratel is looking to offload a 10-per cent stake to raise this amount, which values the company at about Rs49,698 crore ($9 billion). If successful, this would be India's biggest IPO since October 2010, when state-run Coal India raised Rs15,200 crore.

According to reports, the company is expected to price the shares at Rs 210-230, though the final price band is likely to be announced in the first week of December.

Four private equity investors, including arms of Singapore state investor Temasek, Goldman Sachs, hedge fund Eton Park's unit Anadale Ltd and a subsidiary of Japan's Nomura are also expected to offload their stakes through the IPO.

Bharti Airtel, which holds about 86 per cent in the passive infrastructure company, is not selling any shares. Other private equity investors in Bharti Infratel include Kohlberg Kravis Roberts & Co, Macquarie Group, Citigroup, Investment Corporation of Dubai and AIF Capital.