RCoVL to offer Rs 45 bn stake to global investors

Mumbai, May 5 (UNI) Anil Ambani controlled Reliance Communication Ventures Limited{RCVL} today decided to offer stake worth upto Rs 4500 crore to international financial and strategic investors.

''The board of Reliance Communication today approved a proposal to sponsor secondary market Global and American Depository Receipts (GDR, ADR) offering of upto Rs 45 bn at a premium to domestic market,'' a Company source said.

The proposed offering will enable the existing shareholders to unload their holdings to foreign investors at a premium price.

This would certainly reduce the floating stocks of the company in the domestic market and would help the prices firming up further, market sources said.

The proposed GDR/ADR programme relates only to existing shares and will not result in any increase in the outstanding share capital, sources added.

The present market capitalisation of the company is about Rs 70,000 crore.

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