Around 60 group companies of Reliance Communications (RCom) have together posted losses of Rs 1,325.6 crore during the previous financial year, of which Flag Telecom Ireland Network tops the list with a Rs 242.7-crore loss.
UK-based telecommunications companies Vanco UK and Vanco ROW came in second with losses of Rs 179.20 crore each, according to the Draft Red Herring Prospectus (DRHP) filed with the market regulator, Sebi. RCom had filed the DRHP on Thursday for the proposed initial public offering of its tower subsidiary, Reliance Infratel.
RCom holds a 87.67 per cent stake each in Flag Telecom Ireland (a telecommunications company incorporated in Ireland), Vanco UK and Vanco ROW, it said.
| IN THE RED | ||
| Subsidiary | Loss in Rs crore (FY09) | Stake held by RCom (%) |
| Flag Telecom Ireland Network | 242.71 | 87.67 |
| Vanco UK | 179.20 | 87.67 |
| Vanco ROW | 179.20 | 87.67 |
| Reliance Telecom | 174.90 | 100 |
| Reliance Globalcom Services | 93.90 | 88.58 |
| Reliance Big TV | 84.24 | 100 |
| Flag Telecom Development | 66.33 | 87.67 |
| Flag Telecom Network USA | 62.89 | 87.67 |
| Reliance WiMAX World BVI | 54.65 | 90 |
Reliance Telecom, a wholly owned subsidiary, posted losses of Rs 174.9 crore during the previous financial year ended March 31. It provides GSM services across eight circles, including Kolkata, Madhya Pradesh, West Bengal, Himachal Pradesh, Bihar and Assam.
The US-based Reliance Globalcom Services, in which RCom holds an 88.58 per cent stake, posted losses of Rs 93.9 crore. RCom’s wholly owned subsidiary and DTH service provider, Reliance Big TV, posted losses of Rs 84.24 crore during the previous year.
Flag Telecom Development (a Bermuda-based company) incurred losses of around Rs 66.3 crore, while Flag Telecom Network USA had losses of 62.9 crore. RCom holds 87.67 per cent stake in both companies, which are into distribution of bandwidth and internet services.
Reliance WiMAX World BVI, a telecom firm registered in the British Virgin Islands, posted losses of around Rs 54.65 crore. RCom holds a 90 per cent stake in it.
More From This Section
Other companies that posted losses are Vanco GmBH (Rs 27.45 crore), Vanco US (Rs 19.3 crore), Flag Telecom Japan (Rs 18.1 crore), Flag Telecom Servizi Italia (Rs 10.2 crore) and Vanco Euronet Sro (Rs 9.1 crore).