RCom hits 30-month high, stock surges 160% post Reliance Jio deal

The stock has rallied 160% from Rs 57 on April 1 on BSE compared to 4.6% rise in benchmark Sensex.

Reliance Communications (RCom) has surged nearly 9% to Rs 148 in otherwise weak market after the company said that its board of directors had given in-principle approval to demerger of the company’s real estate assets into a separate company to lower debt. The stock is currently trading at its highest level since January 2011 on BSE.

The stock of the Anil Ambani-promoted telecom services provider has outperformed the market by gaining 160% from Rs 57 on April 1, after RCom struck a deal with Reliance Jio Infocomm for sharing its nationwide optic fibre network. The benchmark index has gained 4.6% during the same period.

Last week, the company said it had completed full repayment of two syndicated external commercial borrowing loan facilities of $500 million each, aggregating to $1 billion (about Rs 5,900 crore), during the quarter ended June 30, 2013.

In addition, the company had made scheduled repayments of another $207 million (about Rs 1,200 crore) in respect of other foreign currency loans on the respective due dates during the said quarter.

Today, the stock opened at Rs 138 and hit a low of Rs 134 in early morning deals. A combined 39.6 million shares representing 6% of free-float equity of the company have changed hands so far on BSE and NSE.