RCom raises Rs 4,808 cr in share sale to institutional buyers

Reliance Communications (RCom) on Friday said it raised about Rs 4,808 crore (Rs 48.08 billion) by selling shares to institutional investors to help trim debt. 

India's fourth-largest telecom operator announced plans to sell securities through a qualified institutional placement (QIP) on June 24, the biggest such fund-raising by a private firm.            

At a meeting on Friday, the QIP committee of the board of directors closed the issue and approved the sale of 33.8 crore equity shares of face value of Rs 5 each to qualified institutional buyers at Rs 142.14 apiece, aggregating about Rs 4,808 crore (Rs 48.08 billion), Mumbai-based RCom said in a BSE filing.            

The issue had opened on June 24.   

RCom shares fell 0.34 per cent to Rs 145.50 at the close on the BSE.            

The company had a net debt of Rs 40,177.6 crore in the quarter ended March 31.            

For the quarter ended March 31, RCom posted a 48.5 per cent dip in consolidated net profit to Rs 156 crore (Rs 1.56 billion) from a year earlier. Revenue increased 5.36 per cent to Rs 5,405 crore (Rs 54.05 billion).