Reliance Infra dilutes 5% stake in pre-IPO placemen

American and European investors are reported to be buying the stake in
a pre-IPO placement, a deal that values the company at about Rs 50,000
crore

Anil Ambani group company Reliance Infratel is diluting 5% stake to a
clutch of American and European investors in a pre-IPO placement,
sources suggest.
When contacted, the company officials declined to comment. The latest
deal values the company at around Rs50,000 crore, while the earlier 5%
stake dilution, valued the company at about Rs28,000 crore.

Reliance Infratel had earlier privately placed 5% stake to a group of
institutional investors. Reliance Telecom Infrastructure sold the
stake for Rs1,400 crore to a host of investors including George Soros,
HSBC, Fortress Capital, New Silk, Galleon, DA Capital and GLG Capital.
Earlier this week, market regulator Securities and Exchange Board of
India cleared the initial public offering of this Anil Ambani group
firm.

Reliance Infratel, the telecom infrastructure division of Reliance
Communications, would offer 10% equity to the public valued at
Rs5,000-6,000 crore.
The issue proceeds are proposed to be utilised towards funding
development of passive infrastructure and general corporate purposes,
the company had earlier said. Reliance Infratel owns mobile towers and
other infrastructure