Bharti shortlists banks for tower business IPO

Bharti Airtel has reportedly shortlisted banks including Standard Chartered and JPMorgan to manage a share flotation for its telecom towers (masts) unit, Bharti Infratel, to raise more than $750 million (Rs4,144 crore).

Bharti, India's biggest mobile phone service provider, has also shortlisted Bank of America Merrill Lynch, HSBC, UBS and Kotak Mahindra for the initial public offer, according to Reuters citing two sources close to the matter.

Bharti may file a prospectus for the IPO with the market regulator next month, said the sources, declining to be named as they are not authorised to speak to the media.

Bharti declined to comment.

Bharti Infratel, which has more than 33,000 mobile phone masts, also holds a 42-per cent stake in joint venture Indus Towers, which is the world's biggest telecoms mast company, with about 110,000 masts.

Mast companies get their revenue from leasing infrastructure to network operators but they are going through a tough time in India currently as a Supreme Court order to revoke the regional operating licences of eight mobile phone companies in the 15-player market has weighed negatively on the demand for masts.