Anil Ambani group firm Reliance Infratel is likely to defer its initial public offer (IPO) plans as the capital market regulator’s nod for the public issue is set to expire soon, making it the third major IPO deferment after that of a leading commodity exchange and a mutual fund house.
The Securities and Exchange Board of India (Sebi) had given the go-ahead for the IPO of Reliance Infratel, the telecom infrastructure division of Reliance Communications, on May 12. According to the regulations, a company is required to close the IPO within 90 days of issuance of Sebi’s observation on DRHP — the period ends on August 11.
Reliance Infratel officials declined to comment. Meanwhile, Reliance ADAG Chairman Anil Ambani on July 31 had said, “We have received the approvals on the red herring prospectus... The volatility in global and Indian capital markets is what we are watching. A decision would be taken at an appropriate time.”
