Reliance Infra dilutes 5% stake in pre-IPO placement

Reliance Infra dilutes 5% stake in pre-IPO placement
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First Published: Fri, May 16 2008. 11 15 AM IST
Updated: Fri, May 16 2008. 11 15 AM IST
PTI
New Delhi: Anil Ambani group company Reliance Infratel is diluting 5% stake to a clutch of American and European investors in a pre-IPO placement, sources suggest.
When contacted, the company officials declined to comment. The latest deal values the company at around Rs50,000 crore, while the earlier 5% stake dilution, valued the company at about Rs28,000 crore.
Reliance Infratel had earlier privately placed 5% stake to a group of institutional investors. Reliance Telecom Infrastructure sold the stake for Rs1,400 crore to a host of investors including George Soros, HSBC, Fortress Capital, New Silk, Galleon, DA Capital and GLG Capital.
Earlier this week, market regulator Securities and Exchange Board of India cleared the initial public offering of this Anil Ambani group firm.
Reliance Infratel, the telecom infrastructure division of Reliance Communications, would offer 10% equity to the public valued at Rs5,000-6,000 crore.
The issue proceeds are proposed to be utilised towards funding development of passive infrastructure and general corporate purposes, the company had earlier said. Reliance Infratel owns mobile towers and other infrastructure.
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First Published: Fri, May 16 2008. 11 15 AM IST