Reliance Communications on Tuesday said its group entity Telecom Infrastructure Finance Pvt Ltd has paid it Rs. 650 crore, increasing promoters’ holding to 59.7 per cent in the company.
“The Committee of Directors at their meeting held have allotted 8,66,66,667 equity shares to TIFPL, against Warrants issued to them. As a result, the Promoter Group’s holding has gone up to 59.70 per cent from existing 58.25 per cent,” RCom said in a BSE filing.
The proceeds from TIFPL are expected to be utilised by RCom to lower its debt which was at Rs. 36,334 crore in second quarter ended September 30, 2014.
The company’s shareholders on July 24 had approved issuing of preferential shares of over 8.6 crore to TIFPL.
On August 7, it had paid Rs. 650 crore, which was 50 per cent of the issue price of the warrants. The balance Rs. 650 crore was to be paid whenever firm would exercise right to subscribe equity shares against the warrants on or before March 31, 2015.
RCom said: “Further to our letter dated August 7, 2014 intimating allotment of 8,66,66,667 Warrants to Telecom Infrastructure Finance Private Limited (TIFPL), a Promoter Group company, the Company has now received balance Rs. 650 crore from TIFPL and it has exercised its right to subscribe equity shares against said Warrants which were issued at an issue price of Rs. 150 per Warrant.”
TIFPL paid the balance today which also resulted in the increase of RCom capital from Rs. 1,201.16 crore to Rs. 1,244.49 crore.