Reliance Communications plans $1.2-billion GDR

New Delhi: Reliance Communications has asked for government approval for sponsoring a secondary Global Depository Receipts (GDR) offering of up to $1.2 billion, representing 6.53 per cent of the total paid-up equity shares of the company.

This will include a green shoe option of 20 per cent ($200 million). The offering will be made at international stock exchanges or to institutional investors in Japan, for which a time schedule has not been indicated.

The company informed the stock exchanges that going by the current price of approximately Rs400 a share, an aggregate offer size of $1.2 billion (including the customary green shoe option) would comprise 13.35 crore shares, though the price and market conditions at the time of the issue could vary the number.

The market price of a Reliance Communications equity share was Rs442.05 on December 1, three days before the company''s board passed a resolution for the sponsored GDR offering.

In the filing for the proposed secondary GDR, the company said the offering would broaden its investor base, increase its floating stock at international stock exchanges, thereby attracting large global funds, and enhance the company''s global brand. The company''s GDRs are listed on the Luxembourg Stock Exchange.