Update: RComVL eyes overseas issue: to raise FII limit to 74 per cent
By Our Corporate Bureau | 06 Mar 2006
Reliance Communication Ventures Limited (RComVL), (See: Reliance Communication debuts at Rs 307 on the NSE; Rs 290 on the BSE) which was listed on the exchanges today, is planning an overseas issue. The company is seeking shareholders' nod through a postal ballot, for the international offering.
According to a statement issued by RComVL, the company is seeking shareholders' approval for issuing GDRs, ADRs, convertible bonds, debentures or any such securities, not exceeding 25 per cent of the issued share capital of the company.
Considering that the company has a current market capitalisation of around Rs 36,000 crore ($8 billion), the issue size could be up to $2 billion.
The company is also seeking shareholder approval for increasing the FII investment limit to 74 per cent, the maximum foreign holding allowed for a telecom company.
Shareholders' approval is also being sought for increasing the authorised share capital from Rs 650 crore to Rs 1,500 crore and increasing the borrowing limit to up to Rs 10,000 crore over the sum of capital and free reserves.
RComVL opened at Rs 307 per share on the NSE and at Rs 290 per share on the BSE. The stock is trading at Rs 286 on the NSE at 01.06 PM today.