RCom shares surge nearly 6% on spectrum-sharing deal with RJio

Shares of Reliance Communications surged nearly 6% today after the Department of Telecom (DoT) approved the spectrum-sharing deal between Reliance Jio Infocomm and RCom.

The stock advanced by 5.46% to settle at Rs 56.95 on BSE. During the day, it soared 7% to Rs 57.80.

At NSE, it climbed 5.64% to close at Rs 57.10.

The company added Rs 734.74 crore to Rs 14,174.74 crore in its market valuation.

On the volume front, 52.52 lakh shares of the company changed hands at BSE and over 3 crore shares were traded at NSE during the day.

"We wish to inform that DoT has taken on record 800Mhz spectrum sharing in 7 circles of the company and 2 circles of Reliance Telecom (RTL), a wholly-owned subsidiary with RJIL on April 21, 2016," Reliance Communications said in a regulatory filing.

This approval covers major mobile services market in the country - Mumbai, Uttar Pradesh East, Madhya Pradesh, Bihar, Odisha, Haryana, Himachal Pradesh, Assam and North East.

The spectrum-sharing deal will allow Anil Ambani-led RCom and Mukesh Ambani's RJio to offer 4G services on 10 Mhz block in 800Mhz band, which is considered as the most efficient frequency available for high-speed mobile services.

RCom has plans to start 4G services from May 4.

The DoT in February had approved sharing of active infrastructure like antenna used for transmitting mobile signals.