Reliance Infratel to raise $1 Billion

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Reliance Infratel to raise $1 Billion
New Delhi: Reliance Infratel is planning to increase its capital by 5000 crore through sale of shares and is in talks with many private equity firms for the same. The company, which is a subsidiary of RCOM, is planning to release 10-15 percent stake to private equity firms in a private placement. Last year, the company had dropped its plans to raise about Rs 6,000 crore through sale of about 10 percent stake in an IPO due to adverse market conditions. The company will raise up to $1 billion dollars through the releasing the shares and might finalize the names of potential investors in few days. In a previous private release of shares, Reliance Infratel had raised Rs 1,400 crore, wherein it diluted five percent stake to a host of overseas investors, as this time, the company hopes that's the equity sale could value the company at close to seven billion dollar. The IPO was announced in February 2008 and got the nod from Sebi in May last year. The Sebi's approval fell back in August and since then there has been no official word on revival of the public offer. On Friday, RCOM shares fell by about 4 percent to Rs 333 at the BSE. The shares had rebounded sharply in the past few weeks after hitting a 52-week low of Rs 131.35. The shares were trading at about Rs 550 level about a year ago.