The Hindu Business Line : Foreign holding in RCom may go up post-overseas issue

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New Delhi Feb. 6 The proposed global depository receipts offering in the international market by Reliance Communications will take its foreign direct holding to 22.09 per cent.

The Department of Telecom has given its nod to a request made by the company to consider ADR and GDR as foreign equity participation.

The company had recently got the approval of the Finance Ministry to sponsor a secondary GDR to raise up to a maximum of $1.2 billion, including the customary green shoe option.

It has approval for 74 per cent FDI and at present has foreign shareholding of 15.56 per cent.

Reliance Communications will, however, have to take the approval of the Foreign Investment Promotion Board in case any foreign strategic investor picks up equity in the company.

The company, meanwhile, has completed a $1 billion foreign currency convertible bonds (FCCBs) offering in the international markets.

The company claimed it to be India's largest zero coupon FCCB offering till date. Previous largest deal from India was also by RCOM when it raised $500 million in March 2006. The proceeds will be used for Reliance Communication's capital expenditure of $ 2.5 billion during 2007-08. The company is planning to expand its telecom network by adding new 20,000 towns across the country.

The FCCBs are expected to be listed on the Singapore Stock Exchange shortly.

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