Bharti Infratel makes a weak debut; ends at 13% discount

28 Dec 2012 Evaluate

Bharti Infratel ended at a discount of 13.09% or Rs 29 at Rs 191.20 against its issue price of Rs 220 on the Bombay Stock Exchange (BSE). The stock opened at its high of Rs 200 and touched a low of 188.70. A total 289.25 crore shares were traded on the counter. The company fixed the issue price at Rs 220 a share for institutional and high net worth individuals (HNI’s) and Rs 210 a share for retail investors.

Bharti Infratel’s Rs 4,500-crore IPO was subscribed 1.3 times. The reserved portion of QIBs was oversubscribed by 2.84 times while non-institutional and retail investors' portion was subscribed by just 29 percent and 19 percent, respectively.

The price band for the Bharti Infratel’s initial stake sale to the public was between Rs 210 and Rs 240 per share. This would be the second tower company to be listed on the bourses, with GTL Infrastructure being the only other firm. The tower company intends to use the IPO proceeds to fund its expansion and acquisitions.

Bharti Infratel has more than 34,000 towers in operation, while it holds 42 per cent stake in Indus Towers, which has over one lakh towers in India. However, the proposed IPO will be one of the biggest after the state-run Coal India raised Rs 15,475 crore in October 2010.

Indus Towers Share Price

337.20 -9.25 (-2.67%)
20-Dec-2024 16:59 View Price Chart
Peers
Company Name CMP
Bharti Airtel 1578.25
Vodafone Idea 7.40
Indus Towers 337.20
Tata Communications 1712.75
Bharti Hexacom Ltd. 1499.05
View more..
© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt. Ltd.