RCom gains after commencing monetisation of surplus real estate

Reliance Communications rose 1.44% to Rs 84.40 at 15:00 IST on BSE after the company announced the sale of nearly 150 residential flats situated at Sea Woods complex in Navi Mumbai.

The company made the announcement during market hours today, 21 December 2015.

Meanwhile, the S&P BSE Sensex was up 197.86 points or 0.78% at 25,717.08.

On BSE, so far 9.47 lakh shares were traded in the counter as against average daily volume of 21.07 lakh shares in the past one quarter.

The stock hit a high of Rs 84.50 and a low of Rs 82.90 so far during the day. The stock had hit a 52-week high of Rs 86.85 on 19 December 2014. The stock had hit a record low of Rs 45.65 on 25 August 2015.

The stock had outperformed the market over the past one month till 18 December 2015, rising 22.45% compared with 0.14% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 13.58% as against Sensex's 2.67% fall.

The large-cap company has equity capital of Rs 1244.49 crore. Face value per share is Rs 5.

Reliance Communications (RCom) said that the disposal of the flats at Navi Mumbai marks the commencement of RCom's monetisation programme for surplus real estate owned by the company. The sale consideration for the disposal of the flats at Navi Mumbai has been finalised at over Rs 330 crore. RCom has already received more than 50% of the sale proceeds, and the balance amount will be realised during the current financial year ending 31 March 2016 (FY 2016), upon completion of documentation, etc. which is presently underway.

RCom also expects to finalise and announce plans very shortly for monetisation of its valuable real estate measuring nearly 4 acres, situated at a prime location in New Delhi (being the erstwhile Ranjit Hotel property, just off Connaught Place, New Delhi). The entire proceeds from the monetisation of real estate will be utilised by RCom for repayment of debt, as part of its overall deleveraging plans.

On consolidated basis, RCom's net profit rose 2% to Rs 156 crore on 3.3% growth in net sales to Rs 5260 crore in Q2 September 2015 over Q2 September 2014.

RCom is an integrated telecommunications service provider.

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