Mumbai: India's second-biggest mobile operator Reliance Communications Ltd plans to list its wholly-owned Flag Telecom unit on the London Stock Exchange in a bid to raise $500-$550 million, according to newspapers.
Reliance Communications will dilute up to a 24 per cent stake in the undersea cable unit, The Times of India said, citing unnamed sources.
The Business Standard said the company would begin procedures related to an initial public offering in February.
A spokesman for Reliance Communications could not be reached for comment.
Reliance Communications on Thursday began due diligence on smaller rival Hutchison Essar ahead of a possible bid.
Hutchison Essar, 67 per cent-owned by Hutchison Telecom International, is also being pursued by Britain's Vodafone Group Plc, the Hinduja group and India's Essar group, which already owns 33 per cent in the firm.
Reliance Communications recently said it would invest $1.5 billion in increasing Flag Telecom's network capacity.
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