Cash-strapped RCom gets bids for R Infratel

Looking to reduce its debt burden Reliance Communications (RCom) is evaluating offers from several parties for a controlling stake in its tower infrastructure arm, Reliance Infratel. Based on the indicative offers, completion of such a transaction would facilitate RCom's stated objectives of achieving a substantial reduction of its overall debt position, and staying well within its targeted long-term leverage ratios. Accordingly, the firm has approved taking the process to the next stage of detailed due diligence.

RCom had last year announced a deal worth Rs 50,000 crore to sell Reliance Infratel to GTL. However, the deal fell through in September. As on March 31, RCom's net debt stood at Rs. 32,048.5 crore. If it is able to sell Reliance Infratel, a significant chunk of its debt is likely to go away.