RCom to raise Rs 4,300 crore from investors, promoters

Tags: News
Reliance Communications, India's fourth-largest telecom operator, today said it will raise Rs 4,300 crore by selling securities to institutional investors and promoters to trim debt.

The qualified institutional placement (QIP) portion, which opened today, will give the company Rs 3,000 crore, sources said.

The Mumbai-based firm will raise USD 500 million (Rs 3,000 crore) through the QIP and Rs 1,300 crore through a preferential allotment of warrants to promoter groups at Rs 150 each, they added.

The company's board of directors today passed a resolution authorising the opening of the QIP from June 24, RCom said in a BSE filing. It also approved the issue and allotment of 8.67 crore warrants to the promoters, entitling them to the same amount of equity shares.

The offer price of the QIP has been fixed at Rs 142.13 a share, which is a 5 per cent discount to the floor price of Rs 149.61, based on the formula prescribed by Sebi, it added.

RCom shares today rose 0.57 per cent to close at Rs 151.35 on the BSE.

"The proceeds of the QIP offering and the preferential allotment will be used primarily for repayment of debt and deleveraging the balance sheet of the company," RCom said in the filing.

RCom had a net debt of Rs 40,177.6 crore in the quarter ended March 31.

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