gdrs-in-reliance-communications-shift-hands

GDRs in Reliance Communications shift hands

An undisclosed shareholder sells $163.3 million worth of GDRs at a 10% discount to the price of the underlying shares, while in Singapore Ezra Holdings raises $63 million from the sale of new shares.

India yesterday saw another placement in the wake of Monday's massive stockmarket gains, which have clearly pushed a number of stocks back to levels where companies are starting to feel comfortable to raise new equity and investors are happy to secure some profit. This time it was an existing institutional shareholder who took the opportunity to offload its holdings in mobile operator Reliance Communications.

The UBS-led deal raised $163.3 million and was launched and completed before the Indian market opened.

Unusually for a secondary share placement, the deal was made up of Luxembourg-listed global depositary receipts. However, since the GDRs are highly illiquid with a price that doesn't necessarily correspond to...

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