India's Bharti Televentures Plans IPO Worth $150 Mln in U.S.
New Delhi, Dec. 15 (Bloomberg) -- India's Bharti Televentures Ltd., which owns majority equity stakes in cellular and fixed-line phone service providers, plans an initial share sale worth $150 million in the U.S. in the middle of next year.
The money raised will be used to buy cellular and fixed-line phone service companies in India, Akhil Gupta, director of finance and corporate affairs at Bharti Telecom Ltd., a telecommunications equipment maker, and a company from the Bharti group, said in an interview.
The group wants to acquire more companies because ``in telecom size is very important,' as more subscribers will help boost profits, said Gupta. The company did not provide details.
The purchase will help boost the number of subscribers, which should help the company cut costs as well, analysts said.
Bharti's plan follows a host of Indian companies that have sold American depositary receipts in the past few months. Infosys Technologies Ltd. -- the country's biggest software developer by market capitalization -- Satyam Infoway Ltd., an internet service provider, and ICICI Ltd., the country's second-biggest long-term lender, have sold ADRs this year.
Bharti Televentures, which is 65 percent owned by Bharti Telecom Ltd. and the rest held by Italian telecommunications company Telecom Italia SpA, did not say how many new shares it proposes to sell in the U.S.
The number of shares to be sold will be decided ``depending on the price,' that it may get, said Gupta.
Bharti is talking to Crompton Greaves Ltd., a machinery maker, to sell its 40.1 percent stake in SkyCell Communications Ltd. that offers cellular phone service in the southern city of Chennai, said Gupta. (Bloomberg) |
