New Delhi: Anil Ambani group firm Reliance Infratel is likely to defer its IPO plans as Sebi’s go ahead for the issue is set to expire soon, making it the third major IPO deferment after that of commodity exchange MCX and mutual fund house UTI AMC.
Sebi had issued observation on the IPO of Reliance Infratel, the telecom infrastructure division of Reliance Communications, on 12 May. As per the regulations, a company is required to close the IPO within 90 days of issuance of Sebi’s observation on the draft red herring prospectus (DRHP)—the period which ends on 11 August .
When contacted Reliance Infratel officials declined to comment.
Meanwhile, Reliance ADAG chairman Anil Ambani on 31 July had said, “We have received the approvals on the red herring prospectus... The volatility in global and Indian capital markets is what we are watching. A decision would be taken at an appropriate time.”
“When we find an appropriate time, I am sure that we will proceed both with Globalcom and Reliance Infratel,” Ambani added.
Reliance Infratel builds, owns and operates telecom towers and related assets at designated sites. It also offers these passive telecom infrastructure assets on a shared basis to wireless service providers and other communications service providers under long-term contracts.
Earlier, the IPO of MCX and that of UTI Asset Management, were deferred due to volatile market conditions.
MCX is believed to be reviving the process of its initial public offer and may file a new draft prospectus with the market regulator Sebi by the middle of this month.