Shares in Reliance Communications rose as much as 5.8 percent on Friday morning after the company got the market regulator's nod for the IPO of its telecoms tower unit.

Reliance Communications plans to sell a 10 percent stake in the unit, Reliance Infratel, and sources have said the share sale could raise up to $1 billion.

At 9:24 a.m. (0354 GMT), Reliance Communications shares were 4.9 percent higher at 191.70 rupees in a Mumbai market that was little changed.

Reliance Communications has said it plans to use proceeds from the 156 million share IPO to cut debt, for expansion, joint ventures and acquisitions.

JM Financial, JPMorgan, Deutsche Bank, Enam Securities, HSBC, ICICI Securities, Macquarie, UBS are the arrangers to the offer.

Reliance Infratel had previously filed a regulatory application in February 2008 for an IPO but shelved plans amid a global stock market crash.

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