Reliance Communications sells 5 percent in Reliance Telecom Infrastructure

Reliance Communications Ltd, announced that a group of leading international investors across the US, Europe and Asia, have agreed to purchase 5% of the equity share capital of its 100% owned tower company, Reliance Telecom Infrastructure Ltd ("RTIL"), at an equity value of US$ 6.75 billion (Rs 27,000 crore).So when they sell 5 percent of its tower business they will be getting 1400 crore which will value the company at 27000 crore (US$ 6.75 billion) translates to approximately Rs 135/- per Company's equity share, which is nearly 25% of the Company's current market price of Rs 565 per share.
The lot of sale was heavily subscribed mounting to 8000 crore , but the transaction will get only Cash inflow of Rs 1,400 crores (US$ 337.5 million), the benefits of which will flow to the Company and its shareholders.The Companies residual 95% stake in RTIL is valued at US$ 6.40 (Rs 26,000 crore), and the company will pursue opportunities for further unlocking of value through an RTIL so soon RTIL IPO is in the offing.