Wednesday, August 27, 2003
Hutch India IPO could make it $1.5billion company
In a sign of how quickly the Indian telecom market (especially mobile cellular) is growing, Telecom Asia is reporting that post-IPO, Hutch could be valued at over $1.5 billion, making it the second largest player in the Indian mobile space after Bharti and incumbent BSNL.
Hutchison does not disclose financial figures, which makes it difficult to value the company, but analysts said Bharti's valuation provided a benchmark. "Bharti is valued at about $2.5 billion, so Hutch should be valued at close to $1.5 billion," said Shubham Mazumdar, an analyst at brokerage Motilal Oswal Securities.
Meanwhile, Delhi now has more wireless subscribers than wireline subscribers. Bombay and Madras are set to follow as the cheapest cell phone rates in the world continue to fall and the market continues to expand at an average of 107% every year.
Hutchison does not disclose financial figures, which makes it difficult to value the company, but analysts said Bharti's valuation provided a benchmark. "Bharti is valued at about $2.5 billion, so Hutch should be valued at close to $1.5 billion," said Shubham Mazumdar, an analyst at brokerage Motilal Oswal Securities.
Meanwhile, Delhi now has more wireless subscribers than wireline subscribers. Bombay and Madras are set to follow as the cheapest cell phone rates in the world continue to fall and the market continues to expand at an average of 107% every year.
