New Delhi: Anil Ambani group company Reliance Infratel is diluting 5 per cent stake to a clutch of American and European investors in a pre-IPO placement, a deal that values the company at about Rs 50,000 crore.

When contacted, Reliance Infratel officials declined to comment. Sources, however, said that the company has entered into a deal with some American and European investors for the pre-IPO placement.

The latest deal values the company at around Rs 50,000 crore while the earlier 5 per cent stake dilution that Reliance Infratel had made, valued the company at about Rs 28,000 crore.

The company had earlier privately placed 5 per cent stake to a group of institutional investors. Reliance Telecom Infrastructure sold the stake for Rs 1,400 crore to a host of investors including George Soros, HSBC, Fortress Capital, New Silk, Galleon, DA Capital and GLG Capital.

Earlier this week, market regulator Securities and Exchange Board of India cleared the initial public offering of Anil Ambani group firm Reliance Infratel.

Reliance Infratel, the telecom infrastructure division of Reliance Communications, would offer 10 per cent equity to the public valued at Rs 5,000-6,000 crore.

The issue proceeds are proposed to be utilised towards funding development of passive infrastructure and general corporate purposes, the company had earlier said. Reliance Infratel owns mobile towers and other infrastructure.
Source : PTI