Reliance Communications Said to Plan $300 Million Share SaleGeorge Smith Alexander
Billionaire Anil Ambani’s Reliance Communications Ltd. is considering raising money through an institutional share sale, people with knowledge of the matter said.
The company may seek about $300 million, according to the people, who asked not to be identified as the deliberations are confidential. Reliance Communications will probably start the sale in the next two months, the people said.
India’s fourth-largest telecom operator by subscribers is seeking funds to cut debt after the country’s benchmark stock index climbed to an all-time high. Prime Minister Narendra Modi’s party secured the strongest electoral mandate in 30 years on a pledge to spur an economy where $230 billion of projects have been stalled for want of state clearances.
Reliance Communications rose as much as 2 percent to the highest intraday level in more than seven months. The stock was up 1.2 percent to 155.75 rupees as of 1:53 p.m. in Mumbai.
The company received shareholder approval in August to sell new shares equivalent to as much as 25 percent of its capital. Reliance Communications’s net debt doubled to 402 billion rupees ($6.8 billion) in the four years through March 31, according to a presentation on its website.
Rajeev Narayan, a Mumbai-based spokesman for Reliance Communications, declined to comment.
Idea Cellular Ltd., backed by Indian billionaire Kumar Mangalam Birla, raised 30 billion rupees last week from a share sale to institutional investors.