Reliance Infratel scraps public offer

A company spokesperson did not take queries on lapse of the approval period and on whether the company was looking to revive the process by filing a fresh draft IPO prospectus with market regulator Sebi.

On the secondary market, Reliance Infrastructure, formerly Reliance Energy, has logged the biggest loss among the top 30 companies in the country in the seven-month downslide on the bourses and the group has lost market value worth over Rs 2,00,000 crore in the same period. The public offer, which was planned, had got a regulatory go-ahead with Sebi8217;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 Sebi8217;s observation 8212; the period that ended on August 11. The group had announced the IPO for telecom tower firm Reliance Infratel, which was estimated to raise close to Rs 6,000 crore in February after a stupendous response to Reliance Power initial offer, which raised over Rs 10,000 crore.

The record response notwithstanding, Reliance Power met with a dismal response which happened days within the Reliance Infratel IPO being announced.

A FLOAT THAT SUNK

8226; The group had announced the IPO for telecom tower firm, which was estimated to raise Rs 6,000 crore in February

8226; The IPO had got a regulatory go-ahead with Sebi8217;s issuance of observations on the draft red herring prospectus on May 12

8226; It was required to close the IPO within 90 days 8212; the period that ended on August 11