RCOM gets shareholders nod for share sale

Anil Ambani group company Reliance Communications today said its shareholders have approved raising funds from institutional investors through sale of shares worth up to Rs 15,000 crore at current market price.     

The company in a regulatory filing said that its shareholders "have passed the special resolution by way of postal ballot, authorising the board of directors of the company to issue equity related securities to qualified institutional investors, by requisite majority".     

The issuance of shares through the qualified institutional placement (QIP) would be capped at a such a limit, where the increase is not of more than 25 per cent in the company's issued and subscribed equity capital.     

Calculated at the current market price, the company would raise as much as Rs 15,000 crore by the said sale of shares.

RCOM, however, did not disclose the amount it intended to raise or the number of shares it would sell.     

The said issuance of securities is for strengthening the company's financial position for planned participation in the upcoming auction of the radio waves for starting 3G and WiMax services across the country.     

Shares of the company were trading at Rs 292.80 on BSE, down 0.10 per cent from the previous close.