Reliance Communications (RCom) has moved higher by 4% to Rs 69.20 after the company said that on June 12, 2012 the Singapore Exchange Securities Trading Limited has granted an “eligibility to list” to the business trust subject to the requisite conditions being satisfied.
“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,” Anil Ambani led company said in a filing.
RCom has filed a prospectus with the Singapore Stock Exchange and plans to divest as much as 75% stake in Flag Telecom to raise about Rs 5,000-Rs 6,000 crore. RCom will use entire proceeds to pay high cost rupee loans.
The bankers for the issue include Deutsche Bank, DBS of Singapore, Standard Chartered and Industrial and Commercial Bank of China (ICBC).
The stock opened at Rs 67.35 and hit a high of Rs 69.35 on the National Stock Exchange. A combined around more than 7 million shares have changed hands on the counter so far on both the exchanges.