Debt-laden RCom mulls asset monetisation to pare debt

Debt-laden telecom firm Reliance Communication mulls to sell its two prime properties in order to trim debt.

RCom has appointed real estate services company, JLL to broker a deal for its corporate office in central Delhi and Dhirubhai Ambani Knowledge City (DAKC) in Mumbai. With the monetisation of these assets, the company hopes to raise around Rs 10,000 crore.

Reliance Communication is saddled with Rs. 45,000 crore debt and to service this debt, it has received a 7-months (till December) reprieve from banks.

Furthermore, it has signed a non-binding pact with Brookfield Infrastructure Group to sell a majority stake in company's tower unit for Rs 11,000 crore. Also, the company expects to gain Rs 14,000 crore from RCom-Aircel merger. The company expect these two deals will help to bring down its debt liability to Rs. 20,000 crore.

Recently, a major rating agency has slapped RCom with rating downgrades which lead to 42 percent erosion in the company’s stock price in past 30 days.

Moreover, reacting to real estate assets monetisation, in today’s trade stock of RCom surge as much as 5 percent to touch day high of Rs 20.9 and at 1.00 p.m. the stock is trading at 20.6.