reliance-communications-sells-5-of-towers-unit

Reliance Communications sells 5% of towers unit

The private placement implies a valuation that is at least 50% above analyst expectations.
Indian telecom services provider Reliance Communications RCom has sold a 5% stake in the unit that owns its telecom towers to a group of institutional investors at a price that was sharply above what the market expected.

The price tag of Rs14 billion $337.5 million values the entire unit at $6.75 billion and sets a powerful benchmark for a planned initial public offering that, according to RComÆs chairman, will take place ôin the near futureö. The listing, he said yesterday, will give investors ôanother attractive opportunity to participate in IndiaÆs incredible telecom growthö.

Macquarie analyst Shubham Majumder, who is responsible for the most aggressive estimate on the street, had put the fair value of the...
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