Infocomm IPO to raise Rs 15,000 cr

Infocomm to go scouting for new COO, to have new board.

Reliance Infocomm, a Anil Dhirubahi Ambani Enterprises group company, is planning an initial public offer (IPO) by October or November this year. The size of the IPO could be as big as Rs 15,000 crore, the country's largest IPO, said sources.

The company is believed to have already begun the groundwork and the listing will enable it to raise capital for the expansion of its network. At a press conference yesterday, Anil Ambani had said that Reliance Infocomm would be listed in due course.

At the moment, it is not clear how much equity the ADAE group wishes to offload. While one of Reliance Infocomm's rivals in the mobile telephony business, Bharti Televentures, is already listed, another competitor, Hutch, is planning an IPO soon.

Reliance Infocomm is believed to have hired international consultancy firm Mckinsey & Co for reviewing its business strategy.

It is scouting for a new chief operating officer in place of Kamal Nanavati who heads the company in his capacity as president, wireless.

Nanavati, who is involved with certain textile businesses of Reliance Industries, was brought into Reliance Infocomm on a temporary basis.

The company will soon have a new board with its earlier directors, Mukesh Ambani, his close confidante Anand Jain, Bhagwan Khurana, Bharat Goenka, Manoj Modi and two independent directors exiting it.

During the financial year 2005, the company posted a net profit of Rs 51 crore against a net loss of Rs 391 crore in the previous year. Reliance Infocomm has a market share of over 19 per cent in the Indian wireless market.

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Mckinsey & Co has reportedly been hired for reviewing business strategy

Infocomm to go scouting for new COO, to have new board

Infocomm has a share of over 19% of the Indian wireless market