Anil Ambani lead Reliance Communications group will be working on raising over 3000 crores or about $500 million in the market, as per sources. The funds will be used in part to pull the company out of $6.8 billion debts calculated in March early this year. Company Board has authorized equity placement to institutional investors yesterday. The Company has already received bids for shares worth 120 billion rupees, as per Reuters.
RCom shares closed at 152 Tuesday, while to issue offer would be for 141 Rs, about 5% less compared to Tuesday price. RCom shares hit an all time high of 270 in 2008 soon after it was launched, falling to just above 100 later, presently holding steady around 140-150. RCom has been struggling with gathering funds for their ambitious plans. Company’s undersea cable project is still waiting to be sold. RCom has presence in telecom, film making, media, infra, financial services and other areas.
Other major companies like energy major Adani, Infra major GMR are also rumored to be working on a new issue to capitalize on the recent buoyant mood of the market under the business aggressive BJP government.