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If speculation in the market is to be believed, the Ambani brothers will battle it out on the IPO sweepstakes a few weeks from now.
Sources close to the Mukesh Ambani-controlled Reliance Fresh claimed the company is planning a mega public offering that will mop up in the region of Rs 10,000 crore from the capital market. Ostensibly, this will go into part funding its Rs 25,000 crore mega retail venture.
Sources added that final touches are being added to the draft red herring prospectus (DRHP) that will be filed with market regulator Sebi over the next couple of days.
On their part, a spokesperson for Reliance said, ''There is no truth whatsoever.'' But the denials haven't stopped the excitement in the gray market. In large part because Reliance Infratel, a subsidiary of the Anil Ambani-controlled Reliance Communications (R-Comm), filed its draft prospectus with Sebi for its initial public offering (IPO) on Monday.
Reliance Infratel, which mainly builds, owns and manages telecom towers of R-Comm, is hoping to mop up Rs 6,000 crore from the market. If all goes to plan, both companies could hit the market around April-May of this year, market sources said.
Not much is known of what the contours of Reliance Fresh's IPO may be like. As for Reliance Infratel, it is proposing to offer roughly 8.9 crore shares in the company. Right now, 95% of Reliance Infratel is owned by RelCom while a host of private equity players own the balance 5% in the company. The issue proceeds would be utilized to finance setting up of passive telecom infrastructure sites and for general corporate purposes, the company said in a release.
Apart from building, owning and managing RelComm's telecom towers and other assets, it also provides these passive telecommunication infrastructure assets on a shared basis to wireless service providers and other communications service providers. Source : The Times of India |
