RCOM joins the QIP queue

MUMBAI: Reliance Communications (RCOM) has joined the list of companies planning to raise funds through the qualified institutional placement (QIP) route.

The country���s second-largest mobile service provider said on Friday that it will seek shareholder approval to garner funds from qualified institutional investors.either through a share sale or an issue of a variety of instruments including fully convertible, partly convertible or non-convertible debentures with warrants or any other security, it said in a statement to the stock exchanges. Although the company did not say how much it planned to raise sources close to the development said it may be around $500 million.

RCOM said the funds will be raised in one or more tranches. The proposed exercise shall not result in increase in the company���s paid-up capital by more than 25%, it said. RCOM said the funds may be utilised to finance the company���s plans to participate in the upcoming auction of frequency spectrum for 3G and Wi-Max services. A banking source said Reliance Infrastructures, another firm which is part of the Anil Dhirubhai Ambani Group (ADAG), may also opt for a similar exercise. A spokesperson for the group, however, denied any QIPs by RCOM and R-Infra when ET had sent him a query on last Friday.