Reliance Communication is down in the red, hitting an intra day low at Rs.146.40 and it continues to remain in the red, down over 2.5%.

The stock is down because the market is not too happy with its QIP price, which was priced at a discount to the market price. The company announced yesterday, after market closure, that it will be pricing its QIP at Rs.142.14/share. It will also issue 8.67 crore equity warrants to promoters on preferential basis and the company has set the floor price at Rs.150 each. Each equity warrant will be converted into one equity share and hopes to raise around Rs.1300 crore from this equity warrant issue.  

The money raised from the QIP and preferential allotment is to be used for repayment of debt and deleveraging of the balance sheet.