Mumbai: Bharti Infratel Ltd’s Rs.4,500 crore initial public offer (IPO), tipped to be the second biggest public issue in two years, received bids for 35% of the shares on offer on Wednesday, the second day of the stock sale.
The telecom tower company’s IPO got bids for 55.9 million shares against 188.9 million on offer, according to stock exchanges data.
Qualified institutional buyers’ (QIBs) category was subscribed 44%, while shares reserved for retail investors received 2% subscription. Shares in the institutional slot had not attracted any interest, so far, the data showed. The initial stock sale, which will close on 14 December, is in the price band of Rs.210-240 per share. At the upper end of the price band, Bharti Infratel may raise about Rs.4,533.60 crore.
The shares are proposed to be listed on BSE and NSE. Bharti Airtel, which owns about 86% of Bharti Infratel, is not participating in the share sale.
The company’s IPO is the biggest in two years after state-run Coal India Ltd’s share sale in October 2010. The company has said the proceeds from the IPO will be used to fund its expansion plan and acquisitions.
Bharti Infratel on Monday received Rs.651.7 crore from 18 anchor investors, including Morgan Stanley and Sundaram MF. The company had priced shares for the anchor investors at Rs.230 apiece and allocated 28.3 million shares (15% of the issue size) to them, Bharti Infratel had said in a filing to BSE.