Reliance Communications Ltd on Tuesday said it is launching a share sale to institutional investors as the telecommunications company looks to reduce debt.
The company said it would sell shares for Rs 142.13 each, or a discount of 5 per cent to the floor price. It, however, did not specify the number of shares being sold in the offering.
Reliance communication shares closed at Rs 151.35 on Tuesday on National Stock Exchange (NSE).
Sources had told Reuters earlier the company is likely to raise $500 million through the share sale.
The company will separately also issue up to 86.7 million share warrants to its promoters for about $217 million as part of the capital raising, RCom said.
Reliance Communications, headed by billionaire Anil Ambani, had as of end-March a net debt of Rs 40,178 crore ($6.7 billion), or more than five times its operating profit, making it the most-leveraged among listed Indian carriers.
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