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Ortel IPO gets Rs 46.29 cr via anchor investors ICICI Pru and Axis Cap

MUMBAI: Odisha-based independent MSO Ortel Communications has raised Rs 46.29 crore (Rs 462.9 million) by selling 2.56 million (25,57,425) shares to two anchor investors as part of its Rs 240-crore (Rs 2.4 billion) initial public offering (IPO).

ICICI Prudential Life Insurance and Axis Capital have come at the lower price band of Rs 181 a share, a day ahead of the IPO. Ortel’s IPO is opening on 3 March and the company has set the price band at Rs 181–200 per share.

While Axis Mutual Fund (Midcap Fund) has been allotted 0.6 million shares constituting 23.46 per cent of the proposed pre-IPO placement, Axis Mutual Fund (Small Cap Fund) has picked up 0.3 million shares (11.73 per cent). ICICI Prudential Life Insurance Co Ltd got 1.6 million shares comprising the remaining 64.81 per cent of pre-IPO shares.

The company will raise Rs 217.2 crore (Rs 2.17 billion) at the lower price band and Rs 240 crore (Rs 2.4 billion) at the upper end.

As per the price band, Ortel’s pre-money valuation is Rs 441 crore (Rs 4.41 billion) at the lower band and Rs 487 crore (Rs 4.87 billion) at the upper end. Post-money valuation is at Rs 550 crore (Rs 5.5 billion) at the lower band and Rs 607 crore (Rs 6.07 billion) at the upper end.

The public issue, which closes on 5 March, will have up to 12 million equity shares of face value of Rs 10 each constituting 39.25 per cent of the fully diluted post-issue paid-up equity share capital of the company.

Out of this, there will be a fresh issue of up to 6 million (60,00,000) shares, while private equity firm New Silk Route will partly exit by selling 26.67 per cent stake in Ortel representing six million shares through the public issue.

The company intends to use Rs 67.98 crore (Rs 679.77 million) from the net issue proceeds for expansion of network to provide video, data, and telephony triple-play services; Rs 16.74 crore (Rs 167.40 million) from the net proceeds as CapEx on development of digital cable service; and Rs 10.51 crore (Rs 105.07 million) as CapEx on development of broadband services.

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