Reliance Communications completes corporate reorganisation

08 September 2006

RCOM has now become the primary operating company for the entire telecom business within the ADA Group. The company and its wholly owned subsidiaries own 100 per cent of the networks, facilities, licenses and properties used in its business. After the reorganization, the stake of Reliance Anil Dhirubhai Ambani Group in the company to 66.62 per cent.

These include the nationwide CDMA and GSM wireless networks, the national and intra-city fibre optic networks, the FLAG and FALCON global submarine cable systems, the Reliance World retail chain, the internet data centres, contact centres, network operating centres, and other facilities used in these businesses.

Shareholding: The entire shareholdings of the promoter group in other affiliates will stand exchanged for equity shares of RCOM.

After the reorganization, the market capitalisation of RCOM has increased to Rs62,300 crore ($13.4 billion), making it among the 'top 10' companies in India.

RCOM is part of the benchmark Sensex, Nifty and MSCI indices.

Under the ownership structure resulting from the de-merger of Reliance Industries Ltd (RIL), RCOM did not own a majority stake in any of its principal operating companies or other affiliates and its ownership of its principal operating companies was:

• 45.34 per cent of Reliance Infocomm Ltd (RIC), which in turn held 100.00 per cent of FLAG Telecom Ltd (FLAG);
• 45.00per cent of Reliance Communications Infrastructure Ltd (RCIL); and
• 35.60 per cent of Reliance Telecom Ltd (RTL).