Mar 26, 2007

Reliance Com for overseas listing of FLAG

Reliance Communication has decided for overseas public offer for its international communication subsidiary FLAG Telecom, for which it has shortlisted four merchant bankers.

Sources said Goldman Sachs, Deutsche Bank, Morgan Stanley and UBS were shortlisted for the process, which would see RCOM divesting 10-15 per cent equity.

FLAG Telecom will be listed on the London Stock Exchange.

FLAG is a 100 per cent subsidiary of Reliance Communication. The proceeds raised from the IPO will be used to part finance expansion plans announced last year, which include laying 50,000 km fresh undersea cable in regions where there is dearth of international bandwidth.

The expansion plan could entail an investment of about 1.5 billion dollar (nearly Rs 7,000 crore).

BUY RCOM -- TARGET -- 520 + ( Short term hold ) -- SL -- 370

HOLD RCOM -- TARGET -- 700 + ( 1 YEAR HOLD )

SUPPORT LEVEL @ 370 levels if break that can Come down to 320

THE COMPANY HAS GOOD FUNDAMENTALS & ARE IN EXPANSION MODE FOR DTH,BROADBAND & GSM BUSINESS.....

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