RCom to seek shareholders' approval for fund-raising plans

Reliance Communications (RCom) will ask its shareholders for approval for raising funds through issue equity at its annual general meeting (AGM), the company said in its annual report.The company in its sixth annual general meeting will seek its shareholders approval to issue. The company is looking for improving its financial position and global competitiveness.The issue of the Qualified Institutional Placement (QIP) securities will not result in increase of the earlier equity share capital of the company by more than 15 percent or up to $1 billion of the then issued and subscribed equity shares of the company, the report stated.Earlier, Reliance Communications had also proposed an IPO for Reliance Infratel, but there has not been any major development. The company had also approved induction of private equity investors for an upto 26 percent stake at an appropriate premium to the prevailing market price.If the shareholders approved the fund raising plan, the company will become the second Anil Dhrubhai Ambani Group after Reliance Broadcast Network Limited (RBNL), whose shareholders had agreed to the proposal of raising over Rs.400 crore by allotting five crore shares to promoters and other entities.Today RCom's scrip closed at Rs.170.30 on the Bombay Stock Exchange, it jumped nearly three per cent in the early trade ahead of its AGM to be held today wherein it will seek its shareholders nod to raise funds.