Rs 45 floor price for Bharti IPO

Mumbai: Bharti Tele-Ventures (BTVL), Indias leading private sector provider of telecommunications services based on an aggregate of approximately 1,340,000 customers as of 30 November 2001, has announced a floor price of Rs 45 (a face-value Rs 10 for each share) for its 100-per cent book-building initial public offering (IPO).

The announcement was made by senior Bharti Tele-Ventures officials in the presence of senior officials from its book-running lead managers JM Morgan Stanley and DSP Merrill Lynch simultaneously at Mumbai and Delhi.
	This first ever 100-per cent book-building issue will open for bidding from 28 January 2002 for six days and will close on 2 February 2002. The floor price announced is the minimum price at which bids can be made. Bharti Tele-Ventures further announced that it would offer 18.53 crore equity shares of face value Rs 10 each, representing for 10 per cent of the post-equity share capital.
Bharti Tele-Ventures CMD Sunil Mittal
Of this, a minimum of 60 per cent has to be subscribed by qualified institutional buyers (QIBs).

Bharti Tele-Ventures is embarking on a major expansion plan in the next few years and will be setting up cellular services in nine additional circles, four fixed line circles and national and international long-distance services.

With the launch of the IPO, Bharti Tele-Ventures also announced that it will open bidding centres in all the 20 cities that have a stock exchange and that bids could be made in a minimum of 100 equity shares and in multiples of 100 equity shares thereafter.

Bids more than 1,000 equity shares would be considered for allocation under the non-institutional investor category. To participate in the bidding process, it would be mandatory for the investor to have a dematerialised account. The company also announced that the investors through this book-building process could now bid at any price on or above the floor price in multiples of Re 1.

Bharti Tele-Ventures chairman and group managing director Sunil Bharti Mittal said: "In a short span Bharti Tele-Ventures has emerged as a frontrunner in the Indian telecom sector. With its proven track-record, Bharti Tele-Ventures intends to capitalise on the growth opportunities we believe are available in the Indian telecommunications market."

Bharti Tele-Ventures uniquely positioned to capture maximum telecommunications revenue potential with minimum geographical coverage
Bharti Tele-Ventures plans to concentrate its financial and management resources on key markets in India that it believes has a high potential As of 30 November 2001, approximately 92 per cent of Indias total number of cellular subscribers resided in its six existing and nine proposed cellular circles, which collectively covered only 56 per cent of Indias land mass. For the year ended 31 March 2001, one existing and three proposed fixed line circles accounted for approximately 26 per cent of Indias total direct exchange lines (DELs), based on the annual report of BSNL, and covered only 11 per cent of Indias land mass

Bharti Tele-Ventures leverages the strengths of its partners
Bharti Tele-Ventures believes that it will greatly benefit from the operating and technical expertise and financial strength of its partners SmgTel, Singapore, and Warburg Puicus, USA. Other partners include international financial investors such as International Finance Corporation, Asian Infrastructure Fund Group and New York Life Insurance.

Bharti Tele-Ventures believes in creating true value for its customers
Bharti Tele-Ventures believes in creating and delivering value to its customers through its products and services. This translates itself into a number of widely-recognised and popular brands like AirTel, Magic, TouchTel, Tango and IndiaOne.

JM Morgan Stanley (the book running lead manager) chairman Nimesh Kampani said Bharti Tele-Ventures IPO heralds the entry of telecom majors in the Indian primary market. "The lelecom industry promises to be highly vibrant and has been attracting substantial equity investment even during difficult times The inherent advantages of 100-per cent book-building route has found acceptance with all categories of investors including retail investors, as this would also facilitate early listing of the shares on stock exchanges."

DSP Merrill Lynch (the book running lead manager) chairman Hemendra Kothan said: "Bharti Tele-Ventures policy of pursuing an integrated strategy with a sharp focus on cellular telephony will pay off with expected strong growth in wireless and data and significant room for market share in local and long distance business."

About Bharti Televentures
Bharti Tele-Ventures, a company promoted by Bharti Telecom, is Indias leading private sector provider of telecommunications services based on an aggregate of approximately 1,340,000 customers as of 30 November 2001, consisting of approximately 1,048,000 cellular, 135,000 fixed-line and 157,000 Internet customers.

Cellular services currently constitute the largest portion of its business in terms of total revenues The company also provide fixed-line, VSAT, Internet and network solutions and has also commenced offering national long-distance services by offering data transmission services and intend to offer voice transmission services shortly.

Bharti Tele-Ventures intends to widen its range of telecommunications services to provide international bandwidth access and international voice services The company seeks to capitalise on the growth opportunities that it believes is available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing cellular services.

Bharti Tele-Ventures is a holding company and its operations are segmented into four divisions, operated by wholly-owned subsidiaries: Cellular: Bharti Cellular; Access: Bharti Telenet; Long Distance: Bharti Telesonic; Broadband Solutions: Bharti Broadband Networks.

Bharti Tele-Ventures presently offer cellular services in six of the 22 circles in India and intends to provide cellular services in nine additional circles, for which the company has entered into licenses with the DoT. As of 30 November 2001, approximately 92 per cent of Indias total number of cellular subscribers resided in their existing and proposed cellular circles, according to COAI reports.

Bharti Tele-Ventures was the first private sector operator to provide fixed-line services in India. It currently provide fixed-line services in the Madhya Pradesh circle and Haryana circle and intends to provide fixed-line services in three additional circles of Delhi, Karnataka and Tamil Nadu, for which they have entered into licenses with the DoT.

Bharti Tele-Ventures has always believed in creating strong partnerships with its joint venture partners. Today, SingTel and Warburg Pmcus are its leading partners. The other partners include leading international financial investors like International Finance Corporation, Asian Infrastructure Fund Group and New York Life Insurance.