After raising about three billion dollars through the initial public offer of its power arm, another Anil Ambani Group firm Reliance Infratel, has filed papers with Sebi to enter the capital market.

Reliance Communications' [Get Quote] subsidiary Reliance Infratel has proposed to offer 8.91 crore (89.1 million) equity shares of Rs 5 each for cash at a premium, which would be decided through 100 per cent book building process, the company said in a statement.

The issue would constitute 10.05 per cent of the post issue paid-up equity capital of the company. The company has filed its Draft Red Herring Prospectus with market regulator Sebi on Monday.

The issue proceeds would be utilised to fund development of passive infrastructure sites and for general corporate purposes. Reliance Infratel builds, owns and operates telecommunication towers and related assets at designated sites. It also offers these passive telecom infrastructure assets on a shared basis to wireless service providers and other communications service providers under long-term contracts.

At least 60 per cent of the issue would be allocated on a proportionate basis to Qualified Institutional Buyers, of which 5 per cent would be available for allocation to Mutual Funds only. The remaining QIB portion would be available for allocation to all the QIB bidders, including Mutual Funds, subject to valid bids being received at or above issue price.