Tuesday, July 12, 2005
Cellular brands expects Rs. 7000 Cr. from IPO's
The market sources reveal that the three initial public offerings (IPO) in the telecom sector - from the big brands, Reliance Infocomm, Hutchinson Essar and Idea Cellular - are together expected to mop up at least Rs 7,000 crore from the capital market. The Reliance Infocomm IPO itself will raise about Rs 3,000 to Rs 3,500 crore, Hutchison Essar will raise about Rs 2,000 to Rs 2,500 crore and Idea Cellular will raise about Rs 1,500 crore, say sources. The Reliance Infocomm IPO is expected to hit the market in 2005, followed by Hutchison Essar and Idea Cellular IPOs by June 2006. In order to strengthen the brand in India the funds raised by Hutchison Essar and Idea Cellular will be used for expanding their presence in more circles and Reliance Infocomm will use the funds to expand its mobile phone operations and broadband services. Reliance Infocomm is present in all the 23 circles across the country. However, Hutchison Essar is present in 13 circles and Idea Cellular has a presence in eight circles and recently has bagged the licence to operate in three additional circles. Reliance Infocomm has a market share of 19.89%, Hutchison Essar has a market share of 14.41% and Idea Cellular has a share of 6.85.