IANS

Mumbai, Sep 22: Telecommunications provider Reliance Infratel, promoted by Reliance Communications and part of the R-ADA group, will come out with an initial public offer to the tune of 10 percent of its paid-up equity capital, group chairman Anil Ambani said here Tuesday.

Addressing shareholders at Reliance Communication's annual general meeting here, Ambani said the draft red herring prospectus for the issue would be filed by group company Reliance Power with market regulator Securities and Exchange Board of India.

The assets of Reliance Infratel include 50,000 telecom towers with over 200,000 site tenancy capability and over 180,000 km of nationwide optic-enabling transmission connectivity.

The proceeds from the public issue will be used to expand its telecom tower network.

Ambani also said he expected Reliance Communication's capital expenditure to decline significantly this year following the rollout of its GSM network last fiscal.