Reliance Communications on Wednesday said the Singapore Exchange has approved its initial public offering (IPO) of its undersea cable unit which is likely to be launched in four to five weeks.
“On June 12, 2012, the Singapore Exchange Securities Trading Ltd has granted an ‘eligibility to list’ to the business trust, subject to the requisite conditions being satisfied,” the company said in a filing to the BSE.
Meanwhile, an industry source privy to development told PTI, “This unit will be called Global Telecom Infrastructure Trust and the IPO is likely to be floated in next four to five weeks.”
RCom plans to divest as much as 75% stake in its undersea cable unit and estimates that the company will raise Rs. 5,000-6,000 crore from this transaction.
RCom plans to use the fund raised from the proceeds to pay its high cost rupee debt. As of March 31, 2012, RCom had a net debt of over Rs. 35,839 crore.
The bankers for the issue include Deutsche Bank, DBS of Singapore, Standard Chartered and Industrial and Commercial Bank of China (ICBC).