Reliance Communications has announced that Reliance Infratel, subsidiary of the company proposes an initial public offering – IPO of 8,91,64,100 equity shares of Rs 5 each for cash at a premium to be decided through the 100% book building process. The issue will constitute 10.05% of the post-issue paid-up equity capital of the company.
The company has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI), on 04 February 2008.
The company is part of the Reliance Anil Dhirubhai Ambani group and its business is to build, own and operate telecommunication towers and related assets at designated sites and to provide these passive telecommunication infrastructure assets on a shared basis to wireless service providers and other communications service providers under long-term contracts. These customers use the space on the company’s telecommunication towers to install their active communication-related equipment to operate their wireless communications networks.
goBroadband reports that the company is on a aggressive expansion mode for FY2009 as it extends its GSM footprint on PAN-India basis.