MUMBAI: The Reliance Anil Dhirubhai Ambani group (R-ADAG) has brought all its global businesses consisting of the undersea cable business under FLAG Telecom, the ethernet business under Yipes!, and the global business of Reliance Communications, under a single umbrella brand called Reliance Globalcom. Eventually, the operations will come under a holding company that could be listed overseas, a senior official said on Wednesday.
“As this company is outside India and all its revenues are in foreign currencies, it is but natural that it will be listed on an exchange there, after evaluating where we can get the best possible investors,” Punit Garg, president, Reliance Globalcom, said. The FLAG Telecom listing, which the group had planned earlier, will not be done separately.
“If we go to market, we will go to market as Reliance Globalcom,” he added. With the consolidation, Reliance Globalcom will have annualised start-up revenues of $1.32 billion and core profits (EBITDA) of $334 million for FY08. It will have four lines of business — wholesale services under the sub-brand of Reliance FLAG, managed services, enterprise services and consumer services.
The group will also invest $2 billion in the global business, added Mr Garg. Around $200 million will go towards expansion of its ethernet footprint, $300 million towards setting up more data centres, and the largest chunk of $1.5 billion towards building next generation under-sea cable networks in the African continent, Pacific, Mediterranean and a network connecting India and Honk Kong.
The next generation network builds will be completed in two years, making it the largest private under sea cable network with landing in 50 cities, he added. The investment in the cable network will be funded through internal accruals and through pre-build commitments from carriers. As of now, Reliance Globalcom’s revenues will continue to be reflected in the consolidated results of Reliance Communications, which directly or indirectly holds stake in the Reliance Globalcom.
Wednesday, February 20, 2008
Friday, February 8, 2008
Reliance Infratel IPO - Analysis
Reliance Infratel is coming out with issue of nearly 9 crore shares which constitutes only 10% of the post issued equity. It is going to be the second IPO from the Anil Ambani Group, the first one being Reliance Power which got a thunderous response from investors. The company is basically into passive infrastructure in the telecom space. It has part payment option for retailers and HNI as was the case in Reliance Power IPO as well.
The company plans to have roughly around 36,849 towers by the end of March 2008. It currently owns nearly 23400 towers as of now, so the remaining ones are in the process of being built and is expected to be completed by March 2008. The company has a firm roll out order of 16,000 towers for which it’s going to come to the market and these have to be delivered by March 2009 at an estimated cost of Rs 4,623 crore.
Six months back, they made a private placement of 5% to various investors, that came into a valuation of nearly USD 6.75 billion and it was done at a price of Rs 334. The price range for this IPO might be in the range of Rs 500 to Rs 600.
Watch this blog for more news and updates on Reliance Infratel IPO!
Source : Various Sites on the Internet
Wednesday, February 6, 2008
UP files 66 cases against Reliance Infra
Mumbai, Feb 5 Anil Ambani group's Reliance Infratel Ltd appears to be facing maximum problem in Uttar Pradesh, where the government has filed over five dozen cases on property and stamp duty disputes against the company, which is planning an IPO to raise up to Rs 6,000 crore.
"There have been 66 cases against our company by the Uttar Pradesh government before the court of additional divisional commission, additional district magistrate or the collector," said the draft prospectus filed with market regulator Sebi on Monday.
The company has proposed an IPO within days of another group company Reliance Power raising Rs 11,560 crore through a maiden public issue. The issue was oversubscribed 73 times, even as other Companies like Emaar and Wockhardt are finding it hard to attract investors.
Most of the cases filed by the UP government against Reliance Infratel pertain to property disputes and payment of stamp duty, the draft red herring prospectus said. PTI
In addition, the company is also facing property related litigations and consumer disputes concerning noise and air pollution in different parts of the country.
The disputes relating to property and pollution assumes significance as the company is primarily engaged in setting uptowers for facilitating wireless communication.
According to the draft document, the company proposes to utilise about Rs 4,623.7 crore of the public issue to set up 16,000 passive infrastructure sites for wireless communication.
The company proposes an initial public issue of Rs 8.9 crore equity shares at a face value of Rs 5 each.
Source : www.financialexpress.com
"There have been 66 cases against our company by the Uttar Pradesh government before the court of additional divisional commission, additional district magistrate or the collector," said the draft prospectus filed with market regulator Sebi on Monday.
The company has proposed an IPO within days of another group company Reliance Power raising Rs 11,560 crore through a maiden public issue. The issue was oversubscribed 73 times, even as other Companies like Emaar and Wockhardt are finding it hard to attract investors.
Most of the cases filed by the UP government against Reliance Infratel pertain to property disputes and payment of stamp duty, the draft red herring prospectus said. PTI
In addition, the company is also facing property related litigations and consumer disputes concerning noise and air pollution in different parts of the country.
The disputes relating to property and pollution assumes significance as the company is primarily engaged in setting uptowers for facilitating wireless communication.
According to the draft document, the company proposes to utilise about Rs 4,623.7 crore of the public issue to set up 16,000 passive infrastructure sites for wireless communication.
The company proposes an initial public issue of Rs 8.9 crore equity shares at a face value of Rs 5 each.
Source : www.financialexpress.com
Monday, February 4, 2008
Anil Ambani plans Anil Dhirubhai Ambani Group IPO in price band of Rs 550 - 650
Anil Dhirubhai Ambani Group has filed for initial public offer of Reliance Infratel with SEBI on Friday. As per the official statement, the draft red herring prospectus for Reliance Infratel filed today with SEBI is for an issue of 8.9 crore equity shares of Rs 5 each. The stock price is expected to be in price band of Rs. 550 – 650.
Anil Ambani’s issue for Reliance Power received a tremendous response from investors and managed to register record applications. Reliance Power will be listed on Stock Exchanges on 11th February.
The company recently sold 5% stake for Rs. 1400 crore. The current offer will be to offload 10.05 percent stake in Reliance Infratel. After the issue, the promoters will hold 85% equity in the company. Reliance Communications holds the majority stake in Reliance Infratel.
Reliance Infratel issue will raise around Rs 5000 – 6000 crore. The company plans to install over 15,000 towers all over India. The company will spend around Rs 4300 crore on the current expansion plan. Reliance Infratel plans to own over 85,000 towers by year 2012.
The stock price of Reliance Communications was up by nearly 12 percent today. The stock markets closed with decent gains as buying continued in select technology counters and blue-chips.
Source : www.topnews.in
Anil Ambani’s issue for Reliance Power received a tremendous response from investors and managed to register record applications. Reliance Power will be listed on Stock Exchanges on 11th February.
The company recently sold 5% stake for Rs. 1400 crore. The current offer will be to offload 10.05 percent stake in Reliance Infratel. After the issue, the promoters will hold 85% equity in the company. Reliance Communications holds the majority stake in Reliance Infratel.
Reliance Infratel issue will raise around Rs 5000 – 6000 crore. The company plans to install over 15,000 towers all over India. The company will spend around Rs 4300 crore on the current expansion plan. Reliance Infratel plans to own over 85,000 towers by year 2012.
The stock price of Reliance Communications was up by nearly 12 percent today. The stock markets closed with decent gains as buying continued in select technology counters and blue-chips.
Source : www.topnews.in
Reliance Commn tower arm Infratel IPO likely before March
MUMBAI: The initial public offer of Reliance Communications Ltd's passive infrastructure company Reliance Infratel Ltd is likely to hit the market before March.
The company filed the required applications with the capital market regulator on Monday.
The SEBI would take 30 days to clear the draft red herring prospectus, and the IPO should be opened to the public within two-three weeks of a regulatory approval. Reliance Communications would dilute 10% stake in Infratel via the IPO.
Earlier this financial year, Reliance Communications placed 5% stake in Infratel with a variety of private equity players, valuing the tower business at Rs 27,000 crore.
Source : www.thehindubusinessline.com
The company filed the required applications with the capital market regulator on Monday.
The SEBI would take 30 days to clear the draft red herring prospectus, and the IPO should be opened to the public within two-three weeks of a regulatory approval. Reliance Communications would dilute 10% stake in Infratel via the IPO.
Earlier this financial year, Reliance Communications placed 5% stake in Infratel with a variety of private equity players, valuing the tower business at Rs 27,000 crore.
Source : www.thehindubusinessline.com
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