RCom gains 3% on plans to list unit in Singapore

Shares of Reliance Communications (RCom) today closed with over 3% gains after the company said it is evaluating a potential IPO for its undersea cable unit Flag Telecom on the Singapore Stock Exchange.

RCom shares closed 3.19% higher at Rs 85.65 on the NSE. During the day, the stock surged 4% to a high of Rs 86.35.

The announcement, which was made during the market hours today, lifted the stock in an otherwise sluggish market, where the NSE's Nifty ended 0.18% higher at 5,243.60.

In a BSE filing, RCom today said it is "evaluating a potential initial public offering and listing in Singapore of its subsea telecommunications infrastructure network business, through a Singapore business trust."

The company may sell up to 75% of its holding in Flag Telecom, which is being valued at Rs 7,500-10,000 crore, as per media reports.

The proceeds of the IPO would accrue to RCom, which has appointed Deutsche Bank, DBS Singapore, Standard Chartered and Industrial and Commercial Bank of China as bankers to the issue, they said.