NEW DELHI (Reuters) - Bharti Infratel, backed by billionaire Sunil Mittal, fell as much as 12.7 percent in its trading debut after raising about $760 million in India's biggest IPO in two years, weighed down by a cautious outlook for mobile tower operators.
The IPO, priced near the lower end of an indicative price range, struggled to find interest from retail investors and was supported mostly by foreign institutional investors. But analysts are betting on a revival in India's initial public offerings on the back of a recent stock market gains.
Bharti Infratel
That was down 10.3 percent from its IPO price of 220 rupees for funds and wealthy investors, who received the majority of the allocation. Bharti Infratel sold shares to retail investors at 210 rupees and to cornerstone investors at 230 rupees.
The IPO also gave funds including Singapore state investor Temasek Holdings and the private equity arm of Goldman Sachs Group Inc
The listing comes amid an IPO revival in India after a tepid first half. Credit Analysis and Research Ltd and PC Jeweller Ltd also made their debut this week after raising around $100 million each.
The biggest initial share sale since Coal India Ltd
India's IPO volumes are expected to improve further on rising foreign capital inflows. Several high-profile deals including the listing of Bombay Stock Exchange and the potential IPO of Vodafone Group Plc's
The broader NSE index <.nsei> has surged about 28 percent this year, and is Asia's third best-performing market, according to Thomson Reuters data.
Graphic - Top 10 Indian IPOs: http://link.reuters.com/suw24t
Graphic - India's tower market: http://link.reuters.com/cyq44t
CAUTIOUS OUTLOOK
But weighing on the outlook for mobile tower operators, an Indian court this year revoked permits of several wireless carriers while demand growth for third and fourth-generation mobile data services slowed.
Shares of GTL Infrastructure Ltd
Bharti Infratel priced its IPO at lower valuations to overcome those concerns, attracting more than a dozen cornerstone investors including units of Morgan Stanley
The IPO valued Bharti Infratel at a 35 percent discount to peers in the United States and Indonesia with an enterprise value over EBITDA metric, or earnings before interest, tax, depreciation and amortisation, said Nomura analysts.
But on a price-to-earnings basis, Bharti's valuation implied a 20 percent premium to global peers, Nomura said.
Bharti Infratel sold about 146 million shares, or more than three quarters of the shares on offer, while four of its private equity investors, including the arms of Temasek Holdings and Goldman Sachs, sold a total of 42 million shares.
Bharti Airtel, which owned 86 percent of the tower operator before the IPO, did not sell any shares in the process.
The IPO was mainly supported by foreign institutional investors, with the company receiving bids for less than a fifth of shares on offer for local retail investors.
Bharti Infratel has about 34,000 towers and owns 42 percent of Indus Towers, the world's largest tower operator. Along with Indus, Bharti Infratel has a 38 percent share of the Indian telecommunications tower market.
Bank of America Merrill Lynch
(Reporting by Devidutta Tripathy; Editing by Rafael Nam and Ryan Woo)
Source: http://news.yahoo.com/bharti-infratel-shares-slump-pre-open-market-debut-042320411--sector.html
john wall gordon hayward gas prices rising stars challenge star trek 2 kathy ireland brooke mueller
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন