The Hindu Business Line : Bharti prices IPO at Rs 45

INVESTORS in the initial public offering (IPO) of Bharti TeleVentures Ltd (BTVL) - the first-ever 100 per cent book-building issue - will get shares at Rs 45, at the floor price fixed by the company.The issue closed successfully on Saturday.

The issue opened on January 28 for a total of 18.5 crore equity shares, representing 10 per cent of the post-issue capital of the company.

The book has been oversubscribed over 2.5 times. The company today said though the demand was built at higher than the floor price, largely between Rs 46 and Rs 48 per share, it had been decided to fix the issue price at Rs 45 per share.

"The company, in the interest of investors, has decided to fix the issue price at Rs 45 per share in consultation with the book running lead managers, JM Morgan Stanley and DSP Merrill Lynch," a press release stated.

The total demand at a price of Rs 47 per share was at 25.91 crore shares, while the demand at Rs 46 per share was 39.88 shares against an issue size of 18.53 crore shares.

The issue received over 25,000 applications. According to JM Morgan Stanley and DSP Merrill Lynch, "India's first 100 per cent book-built BTVL IPO has been a success."

Further, they said that in spite of the fact that the book was fully built at Rs 47 per share, the company decided to fix the price at Rs 45 per share in the interest of investors.

While the total demand received under the book has been Rs 2137.5 crore, the amount retained by the company at the issue price of Rs 45 per share is Rs 833.85 crore.

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Bharti prices IPO at Rs 45