RCOM is planning to sell 5 per cent stake in its tower subsidiary, Reliance Telecom Infrastructure Limited (RTIL). Bids have been invited by JP Morgan, which is the financial adviser for the transaction. The bidders for the stake are likely to be financial investors such as hedge funds and financial institutions. In July 2007, RCOM divested 5 per cent stake in RTIL for $337.5 million, valuing the company at $6.75 billion. In the second round of divestment, the operator expects to raise an amount that will value RTIL at about $9 billion. According to RCOM, the profitability of its tower business will increase as the number of tenants per tower increases.
