Reliance Communications to seek shareholder nod to hike share capital

Heavily in debt, Reliance Communications is in the process of seeking shareholders' approval to raise its authorised share capital to Rs2,500 crore from the present Rs1,500 crore, the company said in a notice for annual general meeting.

"The company, in order to meet its growth objectives and to strengthen its financial position, may be required to generate long-term resources by issuing securities," Reliance Communications said.

"It is, therefore, deemed appropriate to increase the authorised share capital of the company."

The company would also seek shareholders' approval to issue securities to qualified institutional buyers in its annual general meeting scheduled for 4 September.

Similar approvals were sought for issue of securities to funds in the past two fiscal years. However, it has not sold any share.