RCOM secures equity funding of Rs 6.5 billion from Telecom Infrastructure Finance

Reliance Communications (RCOM) has secured the second instalment payment of Rs 6.5 billion from its promoter entity, Telecom Infrastructure Finance Private Limited in consideration of the preferential allotment of 86.7 million warrants worth Rs 13 billion. Consequently, the promoter’s holding has increased from 58.25 per cent to 59.7 per cent in the company.

Earlier in August 2014, RCOM had received Rs 6.50 billion from Telecom Infrastructure Finance, which was 50 per cent of the issue price of the warrants. Further, it was decided that the balance Rs 6.50 billion was to be paid whenever RCOM would exercise its right to subscribe equity shares against the warrants on or before March 31, 2015. The warrants were issued at a price of Rs 150, which included a premium of Rs 145.

RCOM intends to utilise the proceeds from Telecom Infrastructure Finance to lower its existing debt, which stood at Rs 363.34 billion as of September 31, 2014.

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