RCom to seek approval to issue shares to QIBs at AGM

New Delhi: Telecom services provider Reliance Communications Thursday said it will seek shareholders' approval to raise funds through securities from Qualified Institutional Buyers at its annual general meeting on September 30.

The Mumbai-based company said however that there are no plans to issue fresh equity.

It said in a filing to the BSE that the Board may, in one or more tranches, issue and allot equity shares or fully convertible debentures or partly convertible debentures or non convertible debentures with warrants or any other securities, which are convertible into or exchangeable with equity shares on such date as may be determined by the Board but not later than 60 months from the date of allotment.

RCom said: "The company, in order to enhance its global competitiveness and its ability to compete with the peer groups in the domestic and international markets, needs to strengthen its financial position and net worth by augmenting its long term resources."

It added that to meet requirements for the above purposes and for general corporate purpose, as may be decided by the Board of Directors from time to time, it is proposed to seek authorisation of the members of the company in favour of the Board of Directors (which may include any committee of Directors constituted by the Board), without the need for any further approval from the members, to undertake the Qualified Institutional Placement (QIP) with the QIBs.

On the issuing of securities, RCom in a statement said: "There are no plans for issuance of any fresh equity capital. The proposed resolution at the forthcoming AGM of the Company is merely an enabling one, in line with the practice followed at AGMs for the past several years."

In June, the country's fourth-largest telecom operator, said it raised around Rs 4,800 crore from a share sale to institutional investors, the biggest QIP fund-raising by a private firm.