The Hindu : Business : RCoVL to sponsor secondary market GDRs/ADRs

Online edition of India's National Newspaper
Saturday, May 06, 2006

Business

Business

RCoVL to sponsor secondary market GDRs/ADRs

Staff Correspondent

The offering of up to Rs. 4,500 crore will be at a premium to the domestic market price

MUMBAI: The Reliance Communications Ventures Ltd. (RCoVL) board has approved a proposal to sponsor a secondary market offering of Global/American Depository Receipts (GDR/ADRs). The proposed offering will enable existing shareholders to offer their shareholdings to financial/srategic international investors and retail/institutional investors in Japan.

The offering of up to Rs. 4,500 crore will be at a premium to the domestic market price, and will be in one or more tranches, as may be appropriate, according to the company. The proposed GDR/ADR programme relates only to existing shares and will not result in any increase in the outstanding share capital.

The equity share capital of RCoVL post the already announced reorganisation, will remain unchanged at Rs. 1,022 crore comprising about 204 crore shares of Rs. 5 each.

The present market capitalisation of the company (based on the post reorganisation equity share capital) is about Rs. 70,000 crore.

RCoVL is India's largest integrated communications service provider in the private sector with over 21 million individual consumer, enterprise and carrier customers as at March 31, 2006. It operates across the full spectrum of wireless and Internet communication services.

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