Reliance Communications (RCom) has rallied 9% to Rs 69 on NSE, extending its previous day’s 11% surge, after signing an agreement with Mukesh Ambani’s Reliance Jio to offer 4G services to its subscribers. RComm will deploy Reliance Jio's fibre-optic network for a one-time payment of Rs 1,200 crore.
“This deal increases the possibility of a consolidation of RCom's telecom tower infrastructure business, which is currently debt laden,” says analyst at Angel Broking.
RCom has been looking out for strategic investors for the business to reduce the borrowings and such an arrangement would be the next big trigger for RCom's stock, he added.
The stock opened at Rs 67.90 and has seen a combined 14.49 million shares changing hands on the counter till 0934 hours on NSE and BSE.
“This deal increases the possibility of a consolidation of RCom's telecom tower infrastructure business, which is currently debt laden,” says analyst at Angel Broking.
RCom has been looking out for strategic investors for the business to reduce the borrowings and such an arrangement would be the next big trigger for RCom's stock, he added.
The stock opened at Rs 67.90 and has seen a combined 14.49 million shares changing hands on the counter till 0934 hours on NSE and BSE.