RCom may sell 5% in its tower unit as a pre-IPO deal

RCom is learnt to have begun talks with strategic and financial investors for selling 5% stake in its tower unit prior to the planned IPO, for about Rs2,500 crore

Reliance Communications Ltd (RCom) is learnt to have begun talks with strategic and financial investors for selling 5% stake in its tower unit prior to the planned initial public offering (IPO), reports PTI.

Banking sources with direct knowledge of the development said that the company was hoping to raise about Rs2,500 crore from the proposed sale.

JM Financial is the lead manager of the talks with a host of co-lead managers like JP Morgan, Enam Financials, Deutsche Bank, ICICI Securities and HSBC.

A company spokesperson declined to comment on the issue, citing Securities and Exchange Board of India (SEBI) guidelines. SEBI rules bar a company from disclosing information about itself after getting approval for an IPO.

In 2007, the company had sold 5% in Infratel for Rs1,400 crore to seven financial investors that included George Soros, HSBC, Fortress Capital, New Silk, Galleon, DA Capital and GLG Capital— in a deal valuing the company at Rs28,000 crore.

If the pre-IPO placement talks materialise into stake sale and the planned 10% IPO takes place, then RCom's stake will reduce to 80%.

Earlier, Reliance Infratel had filed with SEBI for the IPO, which sources had said could raise up to Rs5,000 crore for a 10% stake, which valued the company at Rs50,000 crore.
 

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