RCom gains 3% on buzz of FLAG Telecom's listing
Reliance Communications (RCom) has opened 3% higher at Rs 94.45 on reports that the group company - FLAG Telecom - has filed a prospectus in the Singapore Stock Exchange to list and divest 75% stake in the submarine cables business for $1.25-1.5 billion (Rs 6,250-7,500 crore).
“The money being raised by the Anil Ambani group company will be used to reduce the debt on Reliance Communication’s books. The telecom company has a total debt of Rs 35,000 crore," reports suggest.
The transaction is expected to be completed by the second week of May, according to the prospectus filed on Friday.
A combined 450,000 shares have changed hands on the counter in opening deals on both the exchanges.