Saturday, May 17, 2008

Reliance Infratel To Dilute 5% In Pre-IPO Placement

NEW DELHI: The Anil Ambani group company Reliance Infratel is diluting 5% stake to a clutch of American and European investors in a pre-IPO placement, a deal that values the company at nearly Rs 50,000 crore. When contacted, Reliance Infratel officials declined to comment.

Sources, however, said the company has entered into a deal with some American and European investors for the pre-IPO placement.

The latest deal values the company at around Rs 50,000 crore while the earlier 5% stake dilution that Reliance Infratel had made, valued the company at nearly Rs 28,000 crore.

The company had earlier privately placed 5% stake to a group of institutional investors. Reliance Telecom Infrastructure sold the stake for Rs 1,400 crore to a host of investors, including George Soros, HSBC, Fortress Capital, New Silk, Galleon, DA Capital and GLG Capital. Earlier this week, Sebi cleared the initial public offering of Reliance Infratel.

Reliance Infratel, the telecom infrastructure division of Reliance Communications, would offer 10% equity to the public valued at Rs 5,000-6,000 crore. The issue proceeds are proposed to be utilised towards funding development of passive infrastructure and general corporate purposes, the company had earlier said.

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