Reliance Communications expects to conclude the sale of its telecom tower business next year.
The company would also look at listing Flag Telecom when market conditions improve.
These moves would help RCom, the country’s second largest telecom operator by subscribers, pare its overall debt by FY15.
“I expect RCom to achieve a debt-EBITDA level of 3 or even lower by FY15,” its Chairman Anil Ambani said in the company’s annual general meeting.
The company’s plans to sell its tower arm, Reliance Infratel, has been dragging for the past two years. In May, it said that the tower sales were awaiting regulatory clarity.
The Mumbai-based firm, saddled with a debt of about Rs 35,000 crore, had called off its $1-billion initial public offering plans for Flag Telecom, its submarine cable unit. RCom, which was planning to list Flag Telecom in Singapore, called off the IPO citing unfavourable market conditions.
“Our focus is to monetise all assets and increase the cash flow and profitability, and to be the lowest cost operator in the industry. Going forward, we are committed to unlock value and pursue several initiatives to reduce the overall debt,” Ambani informed the shareholders.
“Hopefully in 2013 we will be able to conclude a value-unlocking strategy for Reliance Infratel,” he said, adding the company will also again attempt to list Flat Telecom in Singapore when market conditions improve. The Mumbai-based company’s share prices, which soared more than 5 per cent on Tuesday, closed up 4.7 per cent at Rs 50.15 in a flat Mumbai market.