Reliance Communications on Wednesday announced that its undersea cable unit got approval from Singapore stock exchange for an IPO, according to Reuters.
The Singapore exchange granted an "eligibility to list" the unit as a business trust, Reliance Communications said in a statement to Indian stock exchanges. The company did not say when it plans the IPO.
The unit has received an “in principle” approval from the Singapore stock exchange for its initial public offering of shares in April this year.
India's No.2 mobile operator, controlled by billionaire Anil Ambani, is struggling with $6.9 billion in debt and has posted 10 consecutive quarters of profit decline amid fierce competition.
The undersea cable unit IPO is crucial for Reliance Communications, which has been trying to raise about $3 billion by selling its telecoms tower assets but has so far been unsuccessful.
Shares of Reliance Communications Ltd rose over 4 per cent in early trade on Wednesday after the company said that the undersea cable unit of the company, Flag Telecom, has received approval from the Singapore stock exchange to list, the company said on Wednesday.
"The proceeds from the share offering by the Reliance Communications unit could be more than $1 billion, a source had said in April," said a Reuters report.
At 10:30 a.m., the company's shares were trading 4 percent higher at Rs 69.50. It has hit a high of Rs 69.75 and a low of Rs 67.05, so far in trade.