RCom says it got several bids for 51% stake in tower unit

Company to use sale proceeds to reduce debt

Reliance Communications Ltd, India's fourth-biggest mobile phone carrier, said it had received non-binding bids from a number of interested buyers for the sale of a majority stake in Reliance Infratel, its tower unit.

Reliance Communications' shares jumped more than 4% after the announcement.

The company, the most leveraged Indian telecommunications carrier with a net debt-to-EBITDA ratio of almost five times, has been talking about a plan to sell a stake in its tower unit as it focuses on its core business.

A formal process for the sale of a controlling 51% stake in its tower unit was launched a few weeks back.

On Monday, Reliance Communications said it had short-listed a number of "very credible interested parties to progress to the next round of the process," but did not name any interested parties.

The company said sale proceeds from the proposed transaction was expected to reduce its overall gross debt during the current financial year substantially.

Reliance Communications had a net debt of Rs 38,600 crore ($5.91 billion) at the end of June, up from Rs 36,730 crore as of March 31. ($1 = 65.3250 rupees)