Mumbai, May 15: The Securities and Exchange Board of India (Sebi) is learnt to have cleared the proposed initial public offering (IPO) of Reliance Infratel Ltd, the tower arm of Reliance Communications (R-Com).

Reliance Infratel, which has 25,000 towers, is planning to divest 10 per cent of its equity. The company is expected to raise Rs 5,000-6,000 crore from the market.

The company had sold 5 per cent of its equity for Rs 1,400 crore last year, which valued it at Rs 28,000 crore. Sources said if the proposed IPO was successful, the company’s valuation could jump to over Rs 60,000 crore.

Announcing R-Com’s fourth quarter results last month, company chairman Anil Ambani had said he would proceed with the Reliance Infratel IPO “sometime this year depending on market conditions”.

Many IPOs haven’t been able to find good valuations because of the erratic movements in the stock market since January this year.

Market circles say Reliance Infratel’s flotation will be a major test for Anil Ambani as his earlier offering this year — the Reliance Power IPO — made a disastrous debut and slipped below the listing price. Analysts then blamed the company’s aggressive pricing as one of the reasons for its debacle. Subsequently, the company had to declare a bonus issue to compensate the shareholders.

The Reliance Power offering had generated a demand of around Rs 1 lakh crore within four hours of the start of the book-building process, with the issue getting oversubscribed nearly 10 times.