RCOM board approves Rel Infratel IPO; to approach SEBI soon | business | Hindustan Times
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RCOM board approves Rel Infratel IPO; to approach SEBI soon

business Updated: Sep 22, 2009 14:55 IST

Anil Ambani-led Reliance Communication on Tuesday said the draft prospectus for the initial public offer of its telecom tower subsidiary Reliance Infratel will be filed with market regulator SEBI shortly.

Reliance Communications, whose board on Tuesday approved the proposal for Reliance Infratel IPO, would also consider fund raising through qualified institutional placement basis at an appropriate time.

"The draft red herring prospectus for the said IPO will be filed by Reliance Infratel Ltd with SEBI shortly," Reliance Communications Chairperson Anil Ambani said in its annual general meeting on Tuesday.

The net issue would constitute 10 per cent of the post-issue paid-up equity capital of the company, he said adding that Reliance Communication would hold 85 per cent stake in Reliance Infratel post the IPO.

Meanwhile, in a filing to the Bombay Stock Exchange, the company said Reliance Communications' board of directors approved the proposal by Reliance Infratel to undertake an initial public offer of equity shares of the company.

Shares of the company witnessed an intra-day high of Rs 309.80, up one per cent from its last closing price. It was later quoted at Rs 308, up 0.46 per cent on the BSE.