Mumbai: Shares of Reliance Communications Wednesday closed higher by over 2 percent after the company received approval from the Singapore Exchange Securities Trading for the IPO of its undersea cable unit.
RCom settled 2.62 percent higher at Rs 68.60 on the BSE. Intra-day, the stock gained 4.56 percent to Rs 69.90.
On the National Stock Exchange, the scrip was up 2.47 percent at Rs 68.50.
Reliance Communications (RCom) is likely to launch the estimated Rs 5,000 crore IPO of its undersea cable unit on Singapore Stock Exchange in four to five weeks.
RCom today announced that Singapore Exchange Securities Trading has approved the Initial Public Offer of the unit.
"On June 12, 2012, the Singapore Exchange Securities Trading Ltd has granted an 'eligibility to list' to the business trust subject to the requisite conditions being satisfied," the company said in a filing to the BSE.
RCom plans to divest as much as 75 percent stake in its undersea cable unit and use the fund raised from the proceeds to pay its high cost rupee debt.
Meanwhile, shares of another Anil Ambani group company Reliance Capital ended the trade on a sluggish note after getting approval from market regulator Sebi and the Monetary Authority of Singapore (MAS) for Rs 1,450-crore stake sale in its mutual fund business unit to Japan's Nippon Life.
The stock lost 0.16 percent to close the day at Rs 344 on the BSE.
At the NSE, however, the scrip settled at Rs 345.20, up 0.17 percent.
Reliance Capital is selling 26 percent stake in Reliance Capital Asset Management Co, which runs India's most profitable mutual fund, to the Japanese firm.
Meanwhile, in a highly volatile broader market the BSE benchmark Sensex ended at 16,880. 51, up 17.71 points.
First Published: Wednesday, June 13, 2012, 21:49