Reliance Communications has said Singapore Exchange Securities Trading Ltd has approved its undersea cable unit’s IPO that is expected to raise about Rs 5,000-6,000 crore.
“On June 12, 2012, Singapore Exchange Securities Trading Ltd has granted an ‘eligibility to list’ to the business trust subject to the requisite conditions being satisfied,” RCom said in a filing to the BSE today.
“On April 10, 2012, RCom announced that it was evaluating a potential initial public offering and listing in Singapore of its subsea telecommunications infrastructure network business, through a Singapore business trust,” it said.
The company shares jumped 4.41 per cent to Rs 69.80 on the BSE following the announcement.
RCom plans to divest as much as 75 per cent stake in Flag Telecom, which is estimated to raise about Rs 5,000-6,000 crore.
The company is likely to use the entire proceeds to pay high cost rupee loans.
Bankers for the issue include Deutsche Bank, DBS of Singapore, Standard Chartered and Industrial and Commercial Bank of China.