RCom to raise Rs 5,000 crore from Singapore listing

Reliance Communications announced its plans for an IPO of its subsea telecommunications infrastructure network business

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Reliance Communications on Wednesday announced its plans for an IPO of its subsea telecommunications infrastructure network business which market sources claim will raise over Rs 5,000 crore in a Singapore listing.

RCom is evaluating a potential initial public offering and listing in Singapore of its subsea telecommunications infrastructure network business,through a Singapore business trust, said the company in a statement to the BSE. In its announcement at the stock exchange the company said that it has received the approvals from the required body in Singapore.

On June 12,2012,the Singapore Exchange Securities Trading Limited has granted an eligibility to list to the business trust subject to the requisite conditions being satisfied.

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According to market sources Reliance Communications is looking to offload 75 per cent of its equity in this business trust (expected to be named Global Telecommunications Infrastructure Trust) and will raise over Rs 5,000 crore.

The company will utilise the proceeds to offload its high cost debt, said a market source who did not wish to be named adding that it may be launched over the next couple of weeks.

The shares however closed the day at Rs 68.6 with a gain of 2.6 per cent.