Monday, March 19, 2012

Reliance Communications unit files for Singapore IPO, seen raising $1,26b - sources

The undersea cable unit of India's Reliance Communications, has applied to list in Singapore, two sources with direct knowledge of the matter said, a move that could raise USUS$1 billion ($1.26 billion) to help its parent company pare a heavy debt burden.

Flag Telecom is seeking to raise US$1.5 billion, according to the Business Standard newspaper, but sources have said that US$1 billion is a more realistic target.

Reliance Communications, controlled by billionaire Anil Ambani, has long been trying to raise funds to cut its debt load, which stood at US$6.9 billion as of December - but with little success.

India's second-largest mobile firm by users competes with 14 others in a highly competitive Indian mobile phone market.

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