Shares of Reliance Communications (RCom) today went up by nearly 3 per cent after the company announced the sale of 51 per cent stake in its telecom tower business to Canada-based Brookfield Infrastructure Group, for an upfront cash payment of Rs 11,000 crore. The scrip went up 2.57 per cent to end at Rs 47.90 on BSE. Intra-day, it surged 3.64 per cent to Rs 48.40. At NSE, shares of the company rose 2.56 per cent to end at Rs 47.90. The company's market valuation advanced by Rs 299.21 crore to Rs 11,922.21 crore. Volumewise, 30.12 lakh shares of the company were traded on BSE and over 2 crore shares changed hands at NSE during the day. "RCom will receive an upfront cash payment of Rs 11,000 crore from the proposed transaction.
RCom will also enjoy 49 per cent future economic upside from the towers business, based on certain conditions," the company said in a statement. RCom plans to utilise the sale proceeds to reduce debt, the statement added. Sources pointed out that RCom will retain 49 per cent stake in the business to be monetised later, as it expects considerable value creation on account of projected growth in tower tenancies over the next couple of years.
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