Indus Towers may merge with Bharti Infratel, prior to the latter’s IPO

The promoters of Indus Towers may merge the company with Bharti Infratel, prior to the latter?s proposed listing.

Indus Towers is a three-way joint venture between Vodafone Essar, Idea Cellular and Bharti Infratel. It is believed that Vodafone and Idea Cellular are in favour of the merger and have asked Bharti Infratel to consider the proposal.

Further, it is believed that the merger may strengthen Bharti Infratel?s business case for investors, as its towers will increase to 155,000. Also, it will permit Vodafone to obtain better valuation for its investments in Indian assets.

However, the merger could delay Bharti Infratel?s initial public offering, which is slated for the second half of the current fiscal. Bharti Infratel is looking to complete the process by January and has already asked Stantadard Chartered Bank and Morgan Stanley to begin working on the issue.