Anil Ambani-led Reliance Communications on Tuesday said it may sell 26 per cent stake in the company, and also list its telecom tower subsidiary Reliance Infratel, to become debt free.

"We are considering options to raise equity resources in both RCom and our tower subsidiary, Reliance Infratel. We also have the possibility, if considered appropriate, of combining such a transaction with a possible IPO, for our tower business," ADAG Chairman Anil Ambani said at the company's sixth annual general meeting here.

He said a combination of these strategic and financial initiatives would result in large cash infusion into the company and significantly bring down debt levels in the next few quarters.

"Indeed, the company could potentially make us debt free in 3 years or so," Ambani added. As on March 31, 2010, RCom's total debt (excluding cash and cash equivalents) was Rs 24,856.95 crore (Rs 248.57 billion), or $5.5 billion.

Ambani said RCcom has the option of inviting minority equity participation of up to 26 per cent from financial and strategic investors.

"There is substantial interest in the market for such an offering given that we are now the only telecom operator in the country without a foreign partner," he added. As per the current price of RCom share, which is trading at Rs 171.85, the company could garner around Rs 9,222.27 crore (Rs 92.22 billion) by selling 26 per cent.

On the fund raising plan for Infratel, Ambani said, "the company is in discussions with strategic and financial investors to unlock value, by creating a truly independent and operator-neutral tower company."

RCom has already invested in telecom infrastructure and assets in past five years, due to which "starting this year, its capital expenditure cycle will dip dramatically", he said.

Rcom has spent nearly Rs 35,000 crore (Rs 350 billion) in capex in the last three years, and its investment this year is projected to be around Rs 3,000 crore (Rs 30 billion). And this trend looks set to continue over the next few years.