GTL Infrastructure, which was seeking to raise about $300 million from institutional investors, has scrapped its fund raising plans due to adverse market condition. GTL Infra will be the second telecom tower company in recent times to have been hit by unfavorable market conditions. Last week, telecom tower firm Viom Networks, formerly Tata-Quippo, had indefinitely deferred its plans to raise up to Rs. 6,000 crore through an initial share sale.
Among other factors, the company did not find the market conditions conducive for listing and also felt that the recent telecom controversies may hit valuations. GTL Infra, the largest independent telecom tower company with over 32,000 towers, had informed stock exchanges on March 15 that it has appointed investment banks to explore capital raising alternatives. The company was looking to raise money for expansion of the tower business. It had hired Goldman Sachs Group Inc, Standard Chartered Plc, and Jefferies Group Inc to manage the fund raising.
The Mumbai-based company last year acquired 17,500 mobile phone transmission towers from Aircel for $1.77 billion. Investment bankers at foreign banks are of the view that equity capital markets will face headwinds in the form of spiraling interest rates and inflation, resulting in fewer issues coming to the market.
| Company Name | CMP |
|---|---|
| Vindhya Telelinks | 1376.60 |
| HFCL | 95.45 |
| Pace Digitek | 177.15 |
| Bondada Engineering | 359.85 |
| GTL Infrastructure | 1.26 |
| View more.. | |
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