Anil Dhirubhai Ambani-led Reliance Communications (RCom) is likely to raise funds through the qualified institutional placement (QIP) route. The company is presently under huge debt of about R30,000 crore. The company's plan of reducing its debt burden by merger of Reliance Infratel, its tower subsidiary, with GTL Infratel has also fallen through.
It is not yet clear how much the company would raise through QIP route. When contacted, the company officials declined to comment.
The company had provision for QIP, which expired in July. It again extended it and will take shareholders approval in its AGM. Sources say that the proposed merger between RCom and GTL, if successful, would have reduced RCom's debt burden by about 60 per cent. This debt would have gone to the merged entity.
After calling off the deal, on Monday, RCom said that it was "now engaged in discussions with certain other strategic and financial investors, to pursue a similar transaction. An appropriate further announcement will be made in due course."
On June 6, RCom board approved selling up to 26 per cent stake in the company. "The board of directors of RCom has approved in-principle the induction of strategic / private equity investors into the Company for an up to 26 per cent equity stake……..," the company had said.
However, the company has not yet found any strategic investor. Though sources said that the company was in talks with Etisalat, the company said that it was in discussions with other investors also.