Sunday, February 3, 2008

Rel Tower plans IPO to 5,000-6,000 crore

Reliance Power completed the country’s biggest public issue, another company from the group Reliance Telecom Infrastructure (RTIL) is gearing up to raise nearly Rs 5,000-6,000 crore through an initial public offering.

RTIL had 14,000 towers across the country when the first stake sale happened in July. Now, it will end up this financial year with 40,000 towers. Also, it plans to add another 20,000 towers next year.

RTIL is putting in an investment of Rs 16,000 crore this year and is expected to pump in Rs 8,000 crore more next year. It has a minimum of four tenancy slots and it is in the process of upgrading this to host seven tenants by 2009. It expects to reach the one lakh tenancy figure this week.

RTIL, a 95% subsidiary of Reliance Communications (RCOM), 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 in a deal which had put its valuation at Rs 27,000 crore.

Going by the IPO size, the equity valuation of RTIL, a company engaged in the business of building, owning and operating communications towers, will be around Rs 50,000-60,000 crore. This will translate into nearly Rs 250-300 per RCOM share. The RCOM stock closed at Rs 612.15 on Friday on the BSE. When contacted, a spokesperson for the group declined to comment.

 
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