Rcom may further dilute ~5% of Reliance Infratel in pre-IPO placement

Rcom may further dilute ~5% of Reliance Infratel through its subsidiary Reliance telecommunications infrastructure Ltd or Reliance telecom infrastructure holdings Ltd. in pre-IPO placement to a clutch of American and European investors, a deal that values the company at nearly Rs 50,000 crore, according to sources. The earlier 5% stake dilution that Reliance Infratel had made, valued the company at nearly Rs 28,000 crore. Earlier last week, Sebi cleared the initial public offering of Reliance Infratel.

Reliance Infratel, the telecom infrastructure division of Reliance Communications, would offer 10% equity to the public valued at Rs 5,000-6,000 crore. The issue proceeds are proposed to be utilised towards funding development of passive infrastructure and general corporate purposes. The re-rating in the valuation of Reliance Infratel should get reflected in the valuation of Reliance Communications going forward.