Reliance Infocomm’s listing is expected to take place over the next two months after it gets approval from the stock exchanges and issues shares to all Reliance Industries Limited (RIL) shareholders.
Questions about bad debts and penalties could reportedly have clouded investor perceptions of RIL’s valuation. Consequently, the company has written off about Rs 45 billion in an effort to clean up its balance sheet ahead of the listing of Reliance Infocomm’s holding company, Reliance Communication Ventures. After the write-off, Reliance Infocomm’s net worth has fallen to about Rs 120 billion from about Rs 165 billion. Its net worth had risen sharply last year after RIL converted its preference shares into equity shares at Rs 32 per share, thereby increasing its direct stake in the company.
