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Monday, July 23, 2018

RCom gains 5% on tower biz deal

The Anil Ambani Group firm Reliance Communications (RCom) rallied 5 per cent.

Written by Agencies | Mumbai | Published: June 28, 2010 9:58:43 am

The Anil Ambani Group firm Reliance Communications (RCom) rallied 5 per cent,a day after it sold its telecom tower business to GTL Infrastructure,making its investors richer by Rs 1,846.61 crore.

Shares of RCom closed at Rs 201.45,up 4.65 per cent on the Bombay Stock Exchange,after surging 6.36 percent to touch a month’s high of Rs 204.75.

“The deal will help RCom reduce its debt burden and roll out its 3G plans,” Geojit BNP Paribas Financial Services assistant vice-president Gaurang Shah said.

Sources close to the deal said it would help RCom reduce its Rs 33,000-crore debt by Rs 18,000 crore.

RCom market capitalisation rose by Rs 1,846.61 crore to Rs 41,579 crore up from Rs 39,732.39 crore on June 25.

Yesterday,the boards of RCom,its subsidiary Reliance Infratel and GTL Infrastructure gave an in-principle approval to a Rs 50,000-crore (USD 11 billion) deal to create the world’s largest independent telecom infrastructure company by merging Reliance Infratel with GTL Infra.

Shares of GTL Infra closed at Rs 47.20,up 4.08 per cent. During the trade,the stock rallied up to 20 per cent to touch a yearly high of Rs 54.40.

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