Indian mobile operator Reliance Communications (RCom) will ask shareholders in early September to approve an increase of its authorised share capital.
The company is looking to grow its share capital from Rs15bn (US$271m) to Rs25bn (US$452m), it said in…
Indian mobile operator Reliance Communications (RCom) will ask shareholders in early September to approve an increase of its authorised share capital.
The company is looking to grow its share capital from Rs15bn (US$271m) to Rs25bn (US$452m), it said in its annual report 2011-2012, and will ask its shareholders to green-light the move at its next annual general meeting on 4 September.
“The company, in order to meet its growth objectives and to strengthen its financial position, may be required to generate long-term resources by issuing securities. It is therefore deemed appropriate to increase the authorised share capital of the company,” RCom said.
The operator, which has accumulated debt of more than US$6bn, also stated that it would seek approval to issue securities to qualified institutional buyers.
A few weeks ago, RCom decided to scrap plans to list its cable unit Flag Telecom, citing adverse market conditions.
In the past, the company has sought to offload several assets, including its tower unit Reliance Infratel, to shore up its balance sheet. But a deal with local towerco GTL failed, in 2010, on alleged valuation differences.
