India's second-largest mobile phone carrier in terms of subscribers is looking to list the unit as a business trust in Singapore.
RComm, controlled by Indian billionaire Anil Ambani, hopes to use the proceeds from the proposed share sale to cut its debt burden, estimated at around $7 billion.
The Singapore exchange granted an “eligibility to list” the unit as a business trust, RComm said in a statement to the Indian stock exchanges but is yet to confirm the time-frame for the IPO.
The undersea cable unit IPO is crucial for RComm, which has been trying to raise around $3 billion by selling its telecoms tower assets but is yet to clinch a deal.
Reliance Communications plans to sell 75 per cent of the wholly-owned undersea cable unit, expected to be listed as Global Telecommunications Infrastructure Trust.
Reliance is also looking to approach cornerstone investors before the launch of the public offer.
The banking advisers on the public offer of shares include Deutsche Bank, Standard Chartered, DBS and Industrial and Commercial Bank of China.
The volatility of the market could lead to a delay as recently motor sport racing company Formula One had delayed its Singapore initial public offer worth up to $3 billion due to weak markets.