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Successful IPO a strong endorsement from qualified investors: Bharti Mittal


14 Dec 2012
Overwhelmed by better-than-expected response for its Rs 4,500 crore initial public offer (IPO) of Bharti Infratel, Bharti Enterprises Chairman and Group CEO Sunil Bharti Mittal said it is a strong endorsement from qualified investors.

Commenting on the Bharti Infratel IPO subscription, Mittal Said, “I am very happy with this IPO being subscribed a day ahead of closure. It’s a strong endorsement from qualified investors, which we were hoping (for).

Considered as the second biggest public issue in the last two years, the equity shares of the company was fully-subscribed a day ahead of its closure.

Bharti Infratel, the first tower company to come out with an IPO, got good response from the investors as it attracted bids for over 19.42 crore shares - of the 18.89 crore equity shares offered in the main book building process - translating to 1.21 time subscription.

The qualified institutional buyers (QIBs) book, which closed yesterday, was oversubscribed 2.84 times, with nearly 95 per cent demand coming from foreign investors.
Shares reserved for retail investors got 6 per cent subscription. And the shares reserved for institutional investors got subscribed 9 per cent.

The company has set a price band of Rs 210-240 per share, where at the upper end it could raise about Rs 4,533.60 crore, while at the lower end it could end up with Rs 3,966.90 crore.

Speaking about the public offer of Indus Towers, Mittal said, As I said the doors have opened.
Source: Dion Global   Type: IPO Related