After ATC tower deal, GTL eyeing ₹15,300-cr valuation

Benchmarked with the most recent trade deal, GTL Infrastructure’s 27,724 towers can be valued at greater than ₹15,300 crore, with its bids for the investor induction course of prone to open within the subsequent 7-10 days. GTL Infra, a International Group firm, is scouting for traders as a part of its Strategic Debt Restructuring (SDR) plan.

GTL Infra, which is merging with one other group firm, Chennai Community Infrastructure Ltd (CNIL), expects a tenancy ratio of about 2.2 with 55,000 tenants as of FY18-end, as per its annual report. The corporate, in response to sources near the event, was anticipating the stake sale to be accomplished by March 2018.

The corporate’s mixed web debt (GTL Infra and CNIL) would fall to ₹3,800 crore by FY19 and this can unlock fairness worth of about ₹10,000-12,000 crore to shareholders, one other supply added.

GTL Infra and CNIL mixed count on a income run fee of ₹2,618 crore, with an EBITDA of ₹1,352 crore, in FY18.

GTL Infra is basing its valuation on the latest American Tower Company (ATC) deal. On Monday, ATC introduced agreements to amass 20,135 telecom towers from Vodafone India and Thought Mobile for ₹7,850 crore. Vodafone India’s standalone tower companies (operated by Vodafone Cellular Providers and Vodafone India) had a complete of 10,235 towers and tenancies of 1.52 as of June 30, 2017. Thought had about 9,900 towers with a tenancy 1.80 as of September 30.

“Although the present tenancies are 1.6 for the mixed standalone tower portfolio, submit the potential Thought-Vodafone merger and tenancies rationalisation, there’s a potential threat of tenancies falling right down to about 1.4,” a Financial institution of America Merrill Lynch report, dated October 25, 2017, mentioned.

Going by a back-of-the-envelope calculation, this interprets to twenty-eight,189 tenants, with ₹27.85 lakh per tenant, one other supply added.

Greater valuation seen Sources mentioned GTL Infra could even entice a better valuation as its towers have been designed to host a number of tenants, in contrast with an operator-owned tower that could be designed to host a single captive operator.

The sources declined to be recognized earlier than an official announcement. When contacted a GTL Infra spokesperson declined to remark.

GTL Infra, which went in for an SDR in 2016, has now circled, with its income rising to ₹2,286 crore in FY17 from ₹1,008 crore in FY11.

The mandate for the investor induction course of below the SDR is being run by EY, as per a regulatory submitting in October.

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