Arab Today, arab today small investors shun india\s bharti infratel ipo
Last Updated : GMT 08:53:10
Arab Today, arab today
Arab Today, arab today

Small investors shun India\'s Bharti Infratel IPO

Arab Today, arab today

Arab Today, arab today Small investors shun India\'s Bharti Infratel IPO

New Delhi - AFP

Small investors largely shunned an IPO by the tower arm of Indian telecom firm Bharti, aimed at raising $845 million, but the issue was fully subscribed thanks to institutional buyers, data showed Saturday. The initial public offer (IPO) marked Bharti Airtel\'s return to the capital market after a decade-long break, and was the biggest public issue since state-run Coal India raised $3.4 billion in an IPO in late 2010. The tower arm, Bharti Infratel, planned to sell 66.1 million shares, or more than 40 percent of its offering, to small investors and offered them a discount. Individual small investors took just under 20 percent of their allocation but demand from institutional buyers ensured that total bids exceeded the shares on offer by 1.3 times, according to stock exchange figures. Since the Coal India offer -- which had bids for more than 15 times the number of shares on offer -- India\'s IPO market had virtually dried up as the economy slowed, with over 50 firms pulling their offers since early 2011. But in recent months, India\'s benchmark 30-share Sensex stock index has surged, led by optimism over a blitz of government reforms and overseas fund in-flows. Bharti Infratel has over 34,000 transmission towers across 18 states covering 11 telecom circles, and also holds a 42 percent stake in Indus Towers -- the world\'s biggest tower firm -- which has around 110,000. Analysts said problems dogging the troubled telecom sector in which profits are under pressure and regulation has been erratic were responsible for the weak individual investor demand along with competition from other smaller issues. Bharti group chief executive Sunil Bharti Mittal told reporters he was happy with the outcome and said he believed the \"the doors have opened\" for other IPOs with the Bharti offer. Bharti Infratel was expected to keep a little over 75 percent of the issue proceeds while a quarter would go to private equity firms including Temasek, The Investment Corp of Dubai and Goldman Sachs, according to issue documents. After the IPO, Bharti Airtel\'s stake in Bharti Infratel would fall to 79 percent from a current 86 percent, while private equity firms will own 10.58 percent, down from 14 percent earlier. Telecom transmission tower companies earn their money by leasing space to mobile phone firms. Bharti Infratel is expected to use the proceeds to expand its number of towers and upgrade existing ones.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today small investors shun india\s bharti infratel ipo Arab Today, arab today small investors shun india\s bharti infratel ipo

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today small investors shun india\s bharti infratel ipo Arab Today, arab today small investors shun india\s bharti infratel ipo

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday