Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel
July 2, 2001
|
|
|
|
|
|
||
|
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Wedding | Women Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel |
||
|
|
||
|
Home >
Money > Business Headlines > Report July 2, 2001 |
Feedback
|
|
|
BPL-Batata combine plans IPO by year-endSurajeet Das Gupta The new entity, to be formed following the merger of BPL and the Tatas-Birla-AT&T, is likely to go public by the year-end. Sources said: "We are contemplating an IPO by Christmas, which may be a combination of domestic and international offerings. The merger helps us to raise large sums required for the expansion of cellular businesses." Sources also informed that the merged entity would require around Rs 5 billion to Rs 7 billion for expansion and cash will also be required for investments in new circles for which the group has bid together in the fourth round of bidding. The combine has bid for Delhi, Madras and Karnataka circles. The enterprise value of the merged entity is $2 billion and has a subscriber base of around one million. The debt component of the enterprise value in the merged entity is around $800 million-$900 million. While details are being worked out, BPL will have around 24 -25 per cent in the new company, the Tatas and Aditya Birla group around 17 per cent each, AT&T around 23-24 per cent while the rest will be with other financial investors including France Telecom, AIG amongst others. The combine already has presence in Bombay, Maharashtra (were both BPL and Batata are present), Tamil Nadu, Kerala and Goa apart from Andhra Pradesh, Madhya Pradesh, Chhattisgarh and Gujarat. The combine has preferred not to bid for circles in the north except for Delhi and also stay away from the east. The BPL-Batata combine will be the third telecom company, which has shown intention to go in for an IPO this year. Sunil Mittal promoted Bharti group has already announced its intention to go in for a Rs 7-9 billion public issue which will be a combination of domestic as well as ADR/GDR. Hutchison-Essar has also made its intention to go public after the merger of businesses into a new company. Merchant bankers opine that there is an International appetite for a maximum two to three large IPO's from the Indian telecom market. However, the valuations and the premium on the shares will be dependent on whether the government issues licences for allowing limited mobility through wireless and local loop. If this happens, a top US-based telecom company points out that the enterprise valuations made now could fall by nearly 50 per cent. Powered by YOU MAY ALSO WANT TO READ:
|
||||
