India's Flag Telecom Pvt. Ltd.--which is owned by Reliance Communications Ltd. (532712.BY)--has filed an initial public offering prospectus with the Singapore Exchange, the Business Standard newspaper reported Monday.

Reliance Communications plans to sell a 75% stake in the undersea cable operator to raise $1.25 billion-$1.5 billion, the report cited the offer document as saying.

It added that the Anil Ambani-led Reliance Group company expects the transaction to be completed by the second week of May.

The funds will be used to repay part of Reliance Communications' debt of INR350.0 billion debt, it said.

Flag Telecom, a part of Reliance Globalcom -- a unit of Reliance Communications -- owns and runs the global businesses of India's second-largest telecom company by users.

Deutsche Bank AG, Standard Chartered Bank PLC., Industrial & Commercial Bank of China Ltd., and Singapore's DBS Bank are the bankers to the stock listing, the report added.

A Reliance Communications spokesperson declined to comment to the newspaper.

Newspaper website: http://www.business-standard.com

--By New Delhi Bureau, Dow Jones Newswires; 91 11 4356 3300; djn.in@dowjones.com