Reliance Communications (RCom), the Indian operator owned by billionaire Anil Ambani, has netted Rs48.08bn (US$800.1m) from a share issue to institutional buyers.
The company sold more than 330 million shares at Rs142.14 (US$2.36) each, including a…
Reliance Communications (RCom), the Indian operator owned by billionaire Anil Ambani, has netted Rs48.08bn (US$800.1m) from a share issue to institutional buyers.
The company sold more than 330 million shares at Rs142.14 (US$2.36) each, including a Rs137.14 premium, it said in a stock exchange announcement.
RCom reportedly aimed to raise around US$500m when it launched the issue earlier this week, but strong demand enabled it to increase its target.
The operator also issued 86.7 million share warrants at Rs5 each to its promoters to raise around US$217m.
Proceeds from the placement and allotment will be used to pare its debt load, which stood at Rs402bn (US$6.8bn) as of 31 March.
RCom, currently the fourth-largest mobile player in India, has sought to trim its liabilities in various ways in recent months, including by selling assets and entering a US$1bn network sharing agreement with new entrant Reliance Jio, the telecoms arm of Reliance Industries.
A report in local newspaper Economic Times today suggested that Anil Ambani may seek to further strengthen ties with Jio, owned by his once-estranged brother Mukesh Ambani.
After years of tension, the two billionaire siblings started doing business together again last year and have since signed a few infrastructure partnerships. They may take this cooperation a step further by entering into roaming agreements or spectrum sharing pacts, once local regulations allow them to do so, according to the report.
Increased proximity between the two operators means RCom would be able to further reduce its debt burden while Jio could accelerate the launch of its services, scheduled for early 2015.
