RCoM to divest 5% in RTIL for Rs 1,400 cr

MUMBAI: Reliance Communications today said it will sell five per cent stake in its subsidiary Reliance Telecom Infrastructure Ltd (RTIL) to seven institutional investors from the US, Europe and Asia for Rs 1,400 crore ($337.5 million).

RCoM chairman Anil Ambani told reporters here more stake in RTIL would be sold in future through the same process and an IPO would follow. He, however, declined to give any time-frame for the venture's listing.

The decision to sell five per cent stake comes a week after Ambani told RCoM's shareholders at the annual general meeting that the company intended to unlock value in the telecom infrastructure arm through private placement and IPO.

Ambani said at this price, RCoM's residual 95 per cent equity is valued at Rs 26,000 crore ($6.4 billion).