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Bharti Infratel IPO gets Rs 651 cr from anchor investors

Bharti Infratel, a tower subsidiary of leading telecom operator Bharti Airtel has received Rs 650.9 crore from anchor investors on Monday - one day ahead of issue opening.
The company has allotted 2.83 crore shares at Rs 230 a share to anchor investors that included Sundaram MF, Columbia Wanger, Alliance Bernstein, Citigroup, Morgan Stanley and Clough Cap.

The 18.89 crore IPO of Bharti Infratel will be opening for subscription from tomorrow till Friday, December 14, 2012. The company intends to raise around Rs 3,967-4,534 crore through the issue at a price band of Rs 210-240 per share.
The equity shares are proposed to be listed on the Bombay Stock Exchange and National Stock Exchange.

The book running lead managers to the issue are DSP Merrill Lynch, JP Morgan India, Standard Chartered Securities, UBS Securities India, Barclays Securities India, Deutsche Equities India, Enam Securities and Kotak Mahindra Capital Company.

The details of the Anchor Investors to whom shares have been allotted are also available at the National Stock Exchange of India Limited (NSE) and BSE websites. Our stock exchange intimation enclosed.

The Company is proposing a public offer of 188,900,000 equity shares of face value of Rs. 10 each (the “Equity Shares”) for cash at a price to be determined through a 100% Book Building Process (the “Offer”). The Price Band has been fixed between Rs. 210 and Rs. 240 per Equity Share. The Issue comprises of a fresh issue of 146,234,112 Equity Shares by the Company (“the FRESH ISSUE”) and an offer for sale of 42,665,888 Equity Shares by certain shareholders (the “OFFER FOR SALE”). The Offer will constitute 10% of the post-Offer paid-up Equity Share capital of the Company.

The Bid/ Offer period opens for subscription on Tuesday, December 11 2012, and will close on Friday, December 14, 2012, for all Bidders (except for Anchor Investors). The Company and the Selling Shareholders may, in consultation with the Book Running Lead Managers, consider participation by Anchor Investors. The Anchor Investor Bid/Offer Period shall be one Working Day prior to the Bid/Offer Opening Date; i.e., Monday, December 10, 2012, in accordance with the SEBI Regulations.

50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”). 5% of the QIB Portion, excluding the Anchor Investor Portion, shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price.

Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. QIBs, other than Anchor Investors, and Non Institutional Bidders shall participate in this Issue only through the ASBA process by providing the details of the bank accounts which will be blocked by the Self Certified Syndicate Banks (“SCSBs”) to the extent of the Bid Amount. Retail Individual Bidders can participate in the Issue through the ASBA process as well as the non-ASBA process.

The Issue has been assigned a 4/5 grading by CRISIL Limited indicating that the fundamentals of the Issue are above average related to other listed equity securities in India.

The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited. NSE is the designated stock exchange for the Issue.

The Joint Book Running Lead Managers to the Issue are DSP Merrill Lynch Limited, J P Morgan India Private Limited, Standard Chartered Securities (India) Limited, UBS Securities India Private Limited. The Book Running Lead Managers (“BRLMs”) to the Issue are Barclays Securities India) Private Limited, Deutsche Equities India Private Limited, Enam Securities Private Limited, HSBC Securities and Capital Markets (India) Private Limited and Kotak Mahindra Capital Company Limited. The Co-Book Running Lead Managers to the Issue are BNP Paribas, DBS Bank Limited, HDFC Bank Limited and ICICI Securities Limited.

Disclaimer:

Bharti Infratel Limited is proposing, subject to market conditions and other considerations, an initial public offer of its equity shares and has filed a Red Herring Prospectus ("RHP") with the RoC. The RHP is available on the website of SEBI at
www.sebi.gov.in, on the respective websites of the Joint Global Coordinators and Book Running Lead Managers at www.dspml.com, www.jpmipl.com, www.standardcharteredsecurities.co.in and www.ubs.com/indianoffers; on the respective websites of the Book Running Lead Managers at www.barcap.in/bsiplofferingdocuments, www.db.com/India, www.enam.com, www.hsbc.co.in/1/2/corporate/equities-globalinvestment-banking and www.investmentbank.kotak.com; and on the respective websites of the Co-Book Running Lead Managers at www.bnpparibas.co.in, www.dbs.com/in, www.hdfcbank.com and www.icicisecurities.com.

Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled 'Risk Factors' on page 17 of the RHP. This announcement is not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia).This announcement does not constitute an offer or solicitation to purchase or subscribe for securities for sale in any jurisdiction other than India, including the United States (including its territories and possessions, any state of the United States and the District of Columbia). Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. The Company has not and does not intend to register any securities under the U.S. Securities Act of 1933, as amended, and does not intend to offer any securities to the public in the United States. The Company will not be registered under the U.S. Investment Company Act of 1940, as amended, and investors will not be entitled to the benefits of that Act.


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