Bharti Infratel

Bharti Infratel

Bharti Infratel - Upgrade

Bharti Infratel - Upgrade

Bharti Infratel - Upgrade

Bharti Infratel - Upgrade

Bharti Infratel

 Bharti Infratel

Bharti Infratel, Rallis India, Cairn India, Marico, L&T Finance, Prestige Estates

Bharti Infratel, Rallis India, Cairn India, Marico, L&T Finance, Prestige Estates

Bharti Infratel

Bharti Infratel

Bharti Infratel IPO gets muted initial response

Receives bids for 72.67 lakh shares The initial public offer (IPO) of Bharti Infratel received bids for 72.67 lakh shares till 16:00 IST on first day of the bidding for the IPO today, 11 December 2012. The issue was subscribed 0.05 times. The issue closes on 14 December 2012. The company is issuing 14.62 crore equity shares of face value of Rs 10 each in the price band of Rs 210 to Rs 240 per share. Along with the fresh issue, there is an offer for sale of 4.26 crore equity shares by existing shareholders viz. Compassvale, GS Strategic, Anadale, Nomura, and Fabrikant HK Trading. There is a discount of Rs 10 per share for retail investors.

Bharti Infratel IPO - What's the take?

Bharti Infratel’s initial share sale will likely be India’s biggest in nearly two years and key for the country’s troubled telecom sector, which has been hit by regulatory flip-flops. Price Band: 210 – 240 rupees/share Issue opens, closes: Dec 11 – Dec 14 The share sale of the telecommunications tower unit of top Indian phone carrier Bharti Airtel Ltd will raise $825 million in the upper end of the price range. The sale comes amidst signs of a revival in the primary market with other smaller private offerings like CARE Ratings, PC Jewellers and Tara Jewels in the process of raising or having recently raised capital. The sale will also be a test of bigger offerings as the government aims to raise roughly $1.2 billion by selling shares in miner NMDC Ltd, sources told Reuters. Here’s what some brokerages are advising investors on the Bharti IPO: Ambit Capital: Advises investors to avoid at current valuations. At 10-12x FY14 EV/EBITDA and 38-44x FY14 earnings, cites expensive valuations. Valuations are fair compared to global peers, but peers such as American Towers and Crown Castle enjoy superior economics. Revenue growth expected to slow down on a drop in tenancies, weak uptake in 3G/4G services. Crisil: IPO grade of 4/5 indicating fundamentals are above average. Network expansion by India’s leading telcos – Bharti Airtel, Vodafone and Idea Cellular Ltd will work in Bharti Infratel’s favour as these top three telcos by revenue are its clients. Large-scale operations, first-mover advantage and pool sharing arrangement among the top three telcos have resulted in better-than-industry tenancy ratio for Bharti Infratel which is expected to improve further leading to high operating leverage and improvement in profitability. Religare Institutional Research: Valuations at higher end of IPO band are not cheap given near-term growth outlook. A key risk is a potential leveraging of the balance sheet to expand inorganically internationally. Advises investors to apply at mid-lower end of price band. Enam Securities: The expansion of services in relatively under-penetrated markets like Category B & C circles by telcos provides a significant opportunity to BIL. BIL and Indus have long-term master service agreements (MSAs) with tenant telcos, which generates stable cash flow in the form of tower rentals as well as provides revenue visibility for the company. Marquee investors like Compassvale (wholly owned subsidiary of Temasek), KKR Towers, Nomura will continue to hold major shares in BIL even post-IPO. Angel Broking: Avoid IPO on premium valuations. Low asset turnover, minimal use of leverage in a capital intensive industry has resulted in low return on equity, or RoE, over past three years. The overcapacity in the industry is expected to limit the demand for rollout of new towers. Further, regulatory changes and the resultant uncertainty pose a risk to telecom players as their network rollout plans could be hampered.

IPO Review - Bharti Infratel

 IPO Review - Bharti Infratel

CARE, PC Jeweller, Bharti Infratel

 CARE, PC Jeweller, Bharti Infratel

Bharti Infratel IPO

 Bharti Infratel IPO

Bharti Infratel IPO Analysis

Bharti Infratel's main business is to acquire, build, own and operate towers and related infrastructure and to provide access of its towers to wireless telecommunications service providers on a shared basis under long-term contracts. The company has 34,220 own towers in 11 telecom circles and 42% equity interest in Indus, which has about 1,10,561 towers in 15 telecom circles. Thus, on a consolidated basis the company operated in 22 telecom circles, with economic interest in 80,656 towers, in India end September 2012, making it one of the largest tower infrastructure providers in India. Bharti Airtel holds 86.1% stake in Bharti Infratel. Post IPO, the stake of the parent, which accounts for about 63% of the consolidated revenue, will come down to 79%. Bharti Airtel is not offloading any stake through the current offer for sale.

Kohlberg Kravis Roberts invests in Bharti Infratel

Bharti Infratel, a wholly owned subsidiary of India`s largest mobile telephony service provider, Bharti Airtel, announced today that the leading private equity firm Kohlberg Kravis Roberts & Co. (KKR) has agreed to invest USD 250 million in Bharti Infratel. The investment will be made by KKR`s Asia dedicated private equity fund and its global private equity fund.

This is in addition to the investment of USD 1 billion in Bharti Infratel by leading international investors Temasek Holdings, The Investment Corporation of Dubai (ICD) Goldman Sachs, Macquarie, AIF Capital, Citigroup & India Equity Partners (IEP) in December 2007.

The enterprise valuation of Bharti Infratel will be in the range of USD 10 to 12.5 billion with the final valuation to be determined on the basis of Bharti Infratel`s actual operating performance in FY 2008-09. This investment reinforces the confidence of leading global investors in the Indian telecom sector, which is now the fastest growing telecom market in the world, and the Bharti Group. It is also an endorsement of the Indian Governments visionary policy on sharing of passive infrastructure.

Bharti Infratel owns over 20,000 sites and holds an approximately 42% stake in Indus Towers, the recently announced joint venture between Bharti, Vodafone and Idea, which has over 70,000 sites. Bharti Infratel and Indus Towers will provide passive infrastructure services to all wireless telecom operators in India on a non-discriminatory basis. Sharing of passive infrastructure
results in capex and opex savings and higher capital efficiency for all wireless operators, enabling quicker roll out of services, especially in rural areas, thus benefiting millions of people across India, the company said in a release.

Shares of the company declined Rs 34.95, or 3.73%, to trade at Rs 901. The total volume of shares traded was 325,373 at the BSE. (1.12 p.m, Wednesday)