Reliance Communications (RCOM) has raised about Rs 48 billion through the issue of new equity shares at Rs 142.13 per share to institutional investors, against a demand for equity shares worth Rs 120 billion. The funds will be primarily used to pare the debt, which stood at Rs 401.77 billion as of March 2014. Earlier in August 2013, the company had received approval from its shareholders to sell new shares equivalent to 25 per cent of its capital.
RCOM has also issued warrants worth Rs 13 billion to its promoters. These warrants can be converted into equity shares at a price of Rs 150 per share. The promoter have made payment of 50 per cent of the subscription amount and the balance 50 per cent will be payable on or before March 31, 2015.
Axis Bank, CLSA, Edelweiss Financial Services, JPMorgan Chase & Co. and Macquarie Group have arranged the share sale.
