Mumbai, Dec. 17: Bharti Infratel today said it has fixed an issue price of Rs 210 per share for retail investors and Rs 220 per share for institutional and other investors, raising around Rs 4,175 crore from the initial public offering (IPO) that closed last Friday.
The issue price is at the lower end of the price band. Bharti Infratel had fixed a price band of Rs 210-240 per share for the IPO, and its offering is the second largest in two years after that of Coal India in 2010.
In a statement issued today, Bharti Infratel said it has fixed an issue price of Rs 220 per share for institutional investors, and since there was a discount of Rs 10 per share to retail investors, the issue price for this category was fixed at Rs 210 apiece.
According to the statement, while the book building process had discovered a price of Rs 230 per share, “being investor friendly, the board of the company decided to price the issue at Rs 210 per equity share for retail investors and Rs 220 for QIBs (Qualified Institutional Buyers), high net worth investors and others”.
Though it had reserved 6.61 crore shares for retail investors, it is understood that Bharti Infratel allotted 1.22 crore to retail investors at a price of Rs 210 per share and around 15 crore shares to institutional and other investors.
Bharti Infratel had raised around Rs 652 crore from 18 anchor investors. It had allocated 2.83 crore shares at a price of Rs 230 per share to these investors. Thus the issue has raised around Rs 4,175 crore.
The Bharti Infratel IPO was subscribed 1.3 times. The issue was open from December 11-14.
At the upper end of the price band, Bharti Infratel was to raise about Rs 4,533.60 crore, while at the lower end it could end up with Rs 3,966.90 crore.
Shares of Bharti Airtel closed at Rs 300.45 today, down 3.69 per cent from its previous close on the Bombay Stock Exchange.