News Column

RCom Raises Funds Through QIP

June 27, 2014

Anil Ambani led @RelianceCommunications Limited has raised a whopping INR 48 Bn through share sale to institutional investors. The company also seeks to issue warrants worth INR 13 Bn to promoters which along with the QIP proceeds will be utilized to trim debt and deleverage its balance sheet.

R-Com had fixed INR 149.61 a share as the floor price for the QIP and the offer price at INR 142.13, which is a 5% discount to the floor price as per SEBI guidelines.

@Edelweiss Limited and JPMorgan Chase and Co were managing the QIP.

The issue got oversubscribed and Rcom received bids of more than INR 1200 Bn, of which it retained INR 480 Bn. The major portion of the offering was picked up by US Long only funds.

Post this QIP which is targeted to slice its debt that has doubled to INR 357.13 Bn in four years, promoter shareholding in RCom will drop to 60% from 67% while foreign holding will be 23%.

For the quarter ended March 31, RCom posted a consolidated net profit of INR 1560 Mn on revenue of INR 54 Bn.

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Source: DealCurry (India)

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