Monday, August 18, 2008

Reliance InfraTel deferred IPO proceeding

Highly volatile market and poor performance of Reliance Power are few of the possible causes for Anil Ambani's dream to take away his plans for Reliance InfraTel IPO at this time.

Reliance Infratel is a telecom infrastructure provider company part of Reliance ADA group's Reliance Communications ltd. Company is in the business of building and maintaining telecommunication towers across India. Company owns around 25000 towers and there related infrastructure.

Company's plans to raise around 6000 Crores are deferred as it failed to precede its IPO in 90 days of approval from SEBI.

Not just for Reliance - ADA Group, this is a setback to India's primary stock market which has already suffered a lot from the market fall in last few months. After few huge IPO's including MCX and UTI AMC IPO's were pulled back in last few weeks, Reliance Infratel's decision to not go for IPO at this time clearly shows investors low confidence in India Equity Market.