Bharti Infratel fixes IPO issue price at Rs 210 for retail

Bharti Infratel, the telecom tower arm of the country's largest mobile operator Bharti Airtel, has fixed the issue price of its Initial Public Offering (IPO) at Rs210 for retail investors and Rs220 rupees a share for qualified institutional buyers (QIBs) and high networth individuals (HNIs).

The price is lower by Rs20 for retail investors and Rs 10 for QIBs and HNIs, compared with the Rs230 a share discovered through the book-building process.
Bharti Infratel had fixed a price band of Rs210-240 a share for its Rs4,500-crore IPO (at the upper price band), which had opened on 11 December and closed on 14 December. The tower firm's initial stake sale to the public was subscribed 1.3 times.

The shares offered through the issue would be listed on the National Stock Exchange of India Limited (NSE) and BSE.

On 10 December, a day before its opening, Bharti Infratel had received Rs651.7 crore from 18 anchor investors, including Morgan Stanley and Sundaram MF. The company had allocated 2.83 crore shares or 15 per cent of the issue size at Rs 230 a piece.

Bharti Infratel has more than 33,660 towers and holds a 42-per cent stake of the world's largest independent tower firm, Indus Towers. Indus Towers – a three-way joint venture between Bharti Airtel, Idea Cellular and Vodafone India – owns and operates about 110,000 towers.

Last fiscal, Bharti Infratel had posted a net profit of Rs 687 crore on a turnover of Rs 9,511 crore.

According to the IPO prospectus, Bharti Infratel would use the IPO proceeds to set up 4,813 new telecom transmission towers and upgrading its existing ones.

It has proposed to use about Rs 1,086 crore of the proceeds for the installation of the 4,813 towers across seven circles. The new towers would be a combination of ground based towers and roof top towers. The new towers would be set up in FY14, FY15 and FY16, it said in the filing.