Reliance Communications has announced that the Singapore stock exchange has approved its undersea cable unit for an IPO that could raise more than $1 billion. The Shares in Reliance Communications, rose as much as 4.4 per cent in Mumbai after the announcement.
The company is looking to list the undersea cable unit as a business trust in Singapore and is expected to use the proceeds from the proposed share sale to cut its debt burden - $7 billion as of March.
The Company has claimed that the Singapore exchange granted "eligibility to list" the unit as a business trust. The company did not say when it plans the IPO.
As per the market sources, The IPO could be launched in July, but that would be difficult in a volatile market. Reliance Communications is believed to sell 75 per cent of the wholly-owned undersea cable unit.
