RIL Comm to offer stock overseas

RIL will sponsor a secondary market offering of American or global depositary receipts for up to $1 bn.

India's top CDMA-based mobile services firm, Reliance Communications Ventures Ltd, said on Friday that its board had approved to sponsor a secondary market offering of American or global depositary receipts for up to $1 billion.

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A sponsored offering will allow existing shareholders to offer their shares to overseas financial and strategic investors, at a premium to the domestic market price.

Reliance Communications said the offer would also be made to retail and institutional investors in Japan.

Shares in Reliance Communcations were up 3.8 per cent at RS 345 in early trade, while the main BSE index was up 0.7 per cent.