Reliance Infratel plans to raise Rs 5,000-crore through an IPO

To finance expansion plans

Reliance Infratel, the tower subsidiary of telecom service provider Reliance Communications (RCom), will reportedly file a draft red herring prospectus (DRHP) with Sebi within a week. Reliance Infratel plans to raise around Rs 5,000 crore through the proposed initial public offer (IPO). The company is looking at offloading a minimum of 10% stake in the IPO.

This would be second largest IPO after the last year's market meltdown, the biggest being the Rs 6,000-crore IPO by state-run National Hydroelectric Power Corporation (NHPC).

Last year, Reliance Infratel had got market regulator Sebi to approve its proposed IPO. However, fragile market conditions resulted in the company putting its IPO plans on hold.

The company will utilise the IPO proceeds for its expansion plans, including expansion of its portfolio of telecom towers and footprint.

RCom which holds a 95% stake in Reliance Infratel, presently has over 50,000 towers.