Reliance Infratel files application for IPO

MUMBAI, INDIA: Reliance Infratel, the tower arm of Reliance Communications Ltd, has filed a regulatory application to sell 10 percent of its equity through an IPO, which two banking sources said would be worth up to $1 billion.

The company said it plans to use proceeds from the 156 million share initial public offer (IPO) to cut debt, for expansion, joint ventures and acquisitions.

Indian firms have raised around $15 billion in share sales so far this year taking advantage of a stock market that has risen to a 16-month high this week.

JM Financial, JPMorgan, Deutsche Bank, Enam Securities, HSBC, ICICI Securities, Macquarie, UBS are the arrangers to the offer.

Reliance Infratel had filed regulatory application last February for an IPO but shelved plans amid a global stock market crash. Earlier this week, Reliance Communications chairman Anil Ambani said the IPO plan had been revived.