Shares of Reliance Communications continued their rally for the fourth straight session today, ending 17 per cent higher after Mukesh Ambani stepped in to bail out the debt-ridden firm by acquiring spectrum, tower, optical fibre network and other assets.
The stock surged 16.99 per cent to settle at Rs 36.22 on BSE. During the day, it soared 34.91 per cent to Rs 41.77 –its 52-week high.
At NSE, shares of the company jumped 16.99 per cent to close at Rs 36.15.
In terms of equity volume, 770.77 lakh shares of the company were traded on BSE and over 68 crore shares changed hands at NSE during the day.
In four days, shares of the company have zoomed 122 per cent adding Rs 5,506.76 crore to its market capitalisation.
While the two companies did not disclose the deal size, banking sources pegged the transaction value at Rs 24,000-25,000 crore.
The announcement came just two days after Reliance Communications – promoted by Anil Ambani – disclosed a new deal with the lenders under which nearly Rs 40,000 crore will be raised through sale of assets, averting an imminent takeover by the 35 local and foreign banks.
The deal will bring an immediate relief to Reliance Communications (RCom), which is reeling under Rs 45,000 crore debt, and the company hopes to use the entire proceeds to pare its debt.