The company in this initial public offering would also make fresh issue of shares apart from the partial stake sale by private equity in view of generating finances for its future expansion plans.
According to a media source, the company has appointed Standard Chartered Bank and Morgan Stanley as merchant bankers and is also in discussion with two other investment banks.
Bharti Airtel in 2007 sold up to a 9 percent stake in the tower unit to seven international investors, including Temasek Holdings and Goldman Sachs for a total $1 billion. Other investors include Macquarie Group, Citigroup, India Equity Partners, Investment Corporation of Dubai and AIF Capital. Kohlberg Kravis Roberts & Co also agreed to invest $250 million in the tower arm in February, 2008.
The company generated an operating profit of Rs 3,159 crore on a turnover of Rs 8,515 crore this fiscal year, which also includes proportionate share of its revenue earned by Indus Towers. The number of telecom towers under Bharti Infratel's control has risen from 49,400 in February 2008 to 78,400. The company also has 42% stake in Indus Towers, which owns 108,566 towers.
Bharti Airtel is the largest wireless service provider in our country and the 5th largest integrated telecom operator in the world. It has presence in all the 22 telecom circles in India and operations in Srilanka, Bangladesh and Africa. Bharti Airtel had also bagged 3G spectrum in 13 out of the 22 telecom circles through an auction held last year, for Rs 12,295 cr. Thus the future prospects looks good for the company.