Wednesday, February 06, 2008

Reliance Plans IPO Of Communications Tower Unit

Anil Ambani is on a money-raising spree. After Reliance Power’s initial public offering drew an enthusiastic investor response, he is taking communications tower company Reliance Infratel to the markets.

Reliance Infratel is a subsidiary of Reliance Communications. It will offer 89 million equity shares at a face value of 5 rupees (12 cents) each. The issue will constitute 10.05% of the postissue, paid-up equity capital of the company, Mumbai-headquartered Reliance Communications said in a statement Monday.

Reliance Infratel builds, own and operates telecommunication towers and related assets and provides these to wireless and other communications service providers. Its offering to the markets comes soon after the government cleared parent company Reliance Communications’ bid to launch services under the popular global system for mobile communications format in 14 telecom service areas.

Reliance Communications was trading up 12%, at 685 rupees ($17.41), on the Bombay Stock Exchange.Read More>>