R-Infratel seeks anchor investors for IPO

MUMBAI: Reliance Infratel is talking to its existing shareholders ��� George Soros, HSBC, New Silk, Galleon, DA Capital and GLG Capital, among others ��� in an attempt to rope them in as anchor investors in their forthcoming initial public offering (IPO).

People familiar with the development told ET that these investors are likely to be offered two-third of the portion that can be allotted to anchor investors. When contacted, RCOM officials declined to comment.

In 2007, the company had sold 5% in the mobile infrastructure company to a clutch of institutional investors for over Rs 1,300 crore. The financial investors included George Soros-Quantum (0.37%), HSBC (1.19%), Fortress Capital (0.74%), New Silk Route (0.31%), Galleon (0.91%) and DA Capital (0.74%). The deal valued the firm at Rs 27,340 crore then. The company had planned to go public in 2008, but shelved its plan due to adverse market conditions.

The company filed its DRHP with Sebi last week for the second time.

���It is too early to comment as to who will finally come on board as anchor investors. The discussions can at best be labelled informal as the Sebi comments are still awaited,��� said a merchant banker on conditions of anonymity.
Interestingly, one of the bankers to the issue, Macquarie Capital is understood to have arranged for a meeting of mutual fund and PE fund managers with the Reliance Infratel management on Tuesday.

Reliance Infratel is looking to raise up to Rs 5,000 crore to help fund its expansion plans. The company currently has around 48,000 towers. It has expanded its tower base by 35,000 in the past two years and has around 1.5 customers per tower. As per the filing with Sebi, the company is planning to sell 15.60 crore of shares, up 6.68 crore shares from 8.916 crore shares it had proposed to sell in 2008.