Saturday, August 16, 2008

Reliance Infratel IPO scrapped

Reliance Infratel, the tower business arm of the group’s telecom entity Reliance Communications, has allowed the regulatory approval to lapse without coming out with an IPO and is unlikely to revive the process soon.

The public offer, which was planned, had got a regulatory go-ahead with Sebi’s issuance of observations on the draft red herring prospectus on May 12. As per the norms, it was required to close the IPO within 90 days of issuance of Sebi’s observation — the period that ended on August 11.

Earlier, Reliance Power met with a dismal response at the time of its listing, which happened days within the Reliance Infratel IPO being announced. Reliance Power slipped below its public issue price on its debut trade although it was subscribed by more than 70 times. It is currently trading with a heavy discount.

On the secondary market also the group has lost a whopping amount of over Rs two trillion worth valuation since the current downslide began in early January, making it probably the biggest loser among all corporate houses.

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