RCom gains after allotment of shares to promoter group firm

Reliance Communications rose 1.44% to Rs 80.80 at 13:05 IST on BSE after the company said it has allotted 8.66 crore equity shares to its promoter group firm pursuant to conversion of 8.66 crore warrants into shares at Rs 150 per warrant.

The announcement was made during market hours today, 20 January 2015.

Meanwhile, the S&P BSE Sensex was up 243.83 points or 0.86% at 28,505.84.

On BSE, so far 8.74 lakh shares were traded in the counter as against average daily volume of 10.29 lakh shares in the past one quarter.

The stock hit a high of Rs 82.25 and a low of Rs 79.10 so far during the day. The stock hit a 52-week high of Rs 164.45 on 20 September 2013. The stock hit a 52-week low of Rs 105.80 on 28 August 2013.

The stock had underperformed the market over the past one month till 19 January 2015, declining 3.98% compared with Sensex's 3.25% rise. The scrip had also underperformed the market in past one quarter, sliding 19.91% as against Sensex's 8.25% rise.

The large-cap company has equity capital of Rs 1201.16 crore. Face value per share is Rs 5.

Reliance Communications (Rcom) said it has received balance Rs 650 crore from its promoter group firm Telecom Infrastructure Finance (TIFPL) on allotment of 8.66 crore equity shares to it by RCom pursuant to TIFPL exercising conversion of 8.66 crore warrants at Rs 150 per warrant. As a result of issue of shares against warrants, the promoter group's holding has gone up to 59.7% from existing 58.25%.

Rcom's consolidated net profit fell 77.3% to Rs 153 crore on 3.3% decline in net sales to Rs 5091 crore in Q2 September 2014 over Q2 September 2013.

RCom is an integrated telecommunications service provider. The company has customer base of about 120 million including over 2.5 million individual overseas retail customers.

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