Reliance Communications, which has got the market regulator's approval for its proposed initial public offering (IPO) of its tower unit
Reliance Infratel, has initiated pre-IPO talks with strategic and financial investors. The company is looking to sell a 3-5% stake and is hoping to rake in around Rs 1,500 to Rs 2,500 crore, depending on how much it sells.
Reliance Infratel (RInfratel) is looking to offload 10% of its equity in the IPO. According to sources, the GTL-Aircel deal has pushed up RInfratel's valuation to Rs 50,000 crore. GTL announced that it was set to pay Aircel Rs 48 lakh per tower for the 17,500 towers owned by the latter. ‘‘If one takes this as a benchmark, RInfratel's valuation for its towers comes to around Rs 50,000 crore,'' the source said.
In its first round of placement in July 2007, RInfratel was valued at Rs 30,000 crore. At that time, RInfratel's towers were valued at Rs 95 lakh each and seven financial investors had picked up 5% equity in the company. Reliance Communication (RCOM) owns the rest 95%. The company claims that its tenancy ratio is 1:2 and is better than standalone player GTL Infra. RInfratel is now looking to scale this up.
Tenancy ratio refers to the number of telecom operators sharing a particular tower. An analyst with India Infoline said the ratio is expected to surge to 1:3 by mid-2010 since new telecom new operators like Swan, Unitech Wireless and others signing infrastructure-sharing deals with existing tower companies.
Source : http://timesofindia.indiatimes.com/biz/india-business/RCOM-plans-to-sell-5-in-tower-business/articleshow/5474685.cms
Reliance Infratel, has initiated pre-IPO talks with strategic and financial investors. The company is looking to sell a 3-5% stake and is hoping to rake in around Rs 1,500 to Rs 2,500 crore, depending on how much it sells.Reliance Infratel (RInfratel) is looking to offload 10% of its equity in the IPO. According to sources, the GTL-Aircel deal has pushed up RInfratel's valuation to Rs 50,000 crore. GTL announced that it was set to pay Aircel Rs 48 lakh per tower for the 17,500 towers owned by the latter. ‘‘If one takes this as a benchmark, RInfratel's valuation for its towers comes to around Rs 50,000 crore,'' the source said.
In its first round of placement in July 2007, RInfratel was valued at Rs 30,000 crore. At that time, RInfratel's towers were valued at Rs 95 lakh each and seven financial investors had picked up 5% equity in the company. Reliance Communication (RCOM) owns the rest 95%. The company claims that its tenancy ratio is 1:2 and is better than standalone player GTL Infra. RInfratel is now looking to scale this up.
Tenancy ratio refers to the number of telecom operators sharing a particular tower. An analyst with India Infoline said the ratio is expected to surge to 1:3 by mid-2010 since new telecom new operators like Swan, Unitech Wireless and others signing infrastructure-sharing deals with existing tower companies.
Source : http://timesofindia.indiatimes.com/biz/india-business/RCOM-plans-to-sell-5-in-tower-business/articleshow/5474685.cms
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