Reliance Communications receives Rs 650 cr from promoter group

Reliance Communications Ltd today said it has received the first instalment of Rs 650 crore from the promoter group for preferential allotment of 8.67 crore warrants aggregating Rs 1,300 crore.

The remaining Rs 650 crore will be received by the firm before March 31, 2015, RCom said in a statement.

“The company has received Rs 650 crore from Telecom Infrastructure Finance Private Limited equivalent to 50 per cent of the issue price of the equity shares upon allotment of warrants and balance amount of Rs 650 crore will be received on or before March 31, 2015,” it said.

The proceeds of the preferential issue will be used to reduce debt, the company said.

RCom said that following a resolution passed by shareholders in July, the committee of directors have today allotted 8.67 warrants to Telecom Infrastructure Finance, a promoter group company.

Warrants, which entitle equivalent number of equity shares of Rs 5 each at a price of Rs 150 per share (including a premium of Rs 145 per share) aggregate to Rs 1,300 crore.

The country’s fourth largest telecom operator has also raised Rs 4,800 crore from a share sale to institutional investors, the biggest QIP fund-raising by a private firm.

RCom said the consolidated net worth of the company has risen to Rs 31,369 crore.

Reliance Communications (RCOM)