RCom looks to reduce debt by Rs 20,000 cr via real estate sale
Riding high on the success of its market offering that helped the company raise Rs 6,100 crore through qualified institutional placement (QIP) of shares, Reliance Communications has set itself an internal target of reducing its overall debt by Rs 20,000 crore by March 31,2016.business Updated: Jul 07, 2014 01:22 IST
Riding high on the success of its market offering that helped the company raise Rs 6,100 crore through qualified institutional placement (QIP) of shares, Anil Ambani-led Reliance Communications (RCom) has set itself an internal target of reducing its overall debt by Rs 20,000 crore by March 31,2016 mainly by divesting stake in prime real estate properties and selling off some of its assets. The company has worked out a strategic asset monetisation plan to achieve the plan.The company has decided to sell off some of the prime real estate property over the next 2-3 quarters. "QIP is the first milestone in RCom’s overall debt reduction plan… with real estate sale the company hopes, it will garner at least Rs 5,000 crore to further reduce its debt," a company source said.
RCom’s overall debt stood at Rs 40,000 crore as on March 31 2014.
When contacted, the company spokesperson declined to comment.
“Amongst the initiatives laid out are monetising RCom’s asset includes, stake sale in the company’s international undersea cable arm Global Cloud Exchange and hiving off of its non-core DTH business, Big TV,” the source added.
The company is also likely to appoint consultants soon for selling its properties. “Knight Frank and CB Richard Ellis are likely to indentify the property for sale and also for developing commercial, residential and IT parks,” sources managing RCom’s asset monetisation plans said.