NEW DELHI, INDIA: Shares in Reliance Communications rose as much as 5.8 per cent 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 per cent stake in the unit, Reliance Infratel, and sources have said the share sale could raise up to $1 billion.

At 9:24 a.m. IST, Reliance Communications shares were 4.9 per cent 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.

 A Reliance Communications spokesman had confirmed on Thursday that the company has got nod for unit's IPO, but he gave no details. Reliance Infratel had filed with the Securities and Exchange Board of India for the IPO.