RCom sets IPO for tower biz, OKs share placement
Anil Ambani-controlled Reliance Communications said that it will soon file with the stock market regulator the draft prospectus for the initial public offer of its telecom tower subsidiary Reliance Infratel. HT Correspondent reports.business Updated: Sep 22, 2009 23:17 IST
Anil Ambani-controlled Reliance Communications, India’s second largest private sector telecom service provider, said on Tuesday that it will soon file with the stock market regulator the draft prospectus for the initial public offer (IPO) of its telecom tower subsidiary Reliance Infratel.
RCom’s board approved the proposal at its annual general meeting in Mumbai and also endorsed a plan to consider raising of funds through qualified institutional placement (QIP) at an appropriate time.
“The draft red herring prospectus for the said IPO will be filed by Reliance Infratel Ltd with SEBI (Securities and Exchange Board of India) shortly,” RCom chairman Anil Ambani said.
The issue would constitute 10 per cent of the post-issue paid-up equity capital of the company, he said, adding that RCom will hold 85 per cent in Reliance Infratel after its IPO.
Ambani also said that RCom’s capital expenditure would decline sharply starting this year and continue on a downward trend in the future, primarily on completion of the a GSM network rollout. In the 2008-09, the company's capital expenditure at Rs 19,000 crore, while for the current fiscal, the capex guidance is at Rs 10,000 crore.