RCom gains on bargain hunting

Reliance Communications rose 3.74% to Rs 117.90 at 14:47 IST on BSE on bargain hunting after the stock fell 10.26% in the preceding three consecutive sessions to Rs 113.65 on 24 June 2013 from a recent high of Rs 126.65 on 19 June 2013.

Meanwhile, the S&P BSE Sensex was up 193.14 points, or 1.04%, to 18,734.03.

On BSE, 52.69 lakh shares were traded in the counter as against an average daily volume of 64.77 lakh shares in the past one quarter.

The stock hit a high of Rs 119.60 and a low of Rs 110.65 so far during the day. The stock had hit a 52-week high of Rs 130.10 on 19 June 2013. The stock had hit a record low of Rs 46.60 on 30 August 2012.

The stock had outperformed the market over the past one month till 24 June 2013, rising 4.94% compared with the Sensex's 5.90% fall. The scrip had also outperformed the market in past one quarter, gaining 110.27% as against Sensex's 1.04% fall.

The large-cap telecom company has an equity capital of Rs 1032.01 crore. Face value per share is Rs 5.

On 7 June 2013, Reliance Jio Infocomm, a subsidiary of Mukesh Ambani-controlled Reliance Industries (RIL), and Reliance Communications (RCom) announced signing a definitive agreement for sharing the latter's nationwide telecom towers infrastructure.

Late last month, some media reports indicated that RCom raised basic rates for both GSM and CDMA pre-paid mobile-to-mobile calls by 33% to 2 paise per second from 1.5 paise per second.

RCom on 10 May 2013 made full repayment of a syndicated ECB loan facility of $500 million (over Rs 2700) on the due date. The loan was taken in 2007 from a group of international bank, RCom said in a statement.

On 22 April 2013, RCom announced that Samena Capital in a proposed consortium with certain other global PE funds is at an advance stage of the process of due diligence and completion of definitive documents in relation to the acquisition of the company's global communications services business unit -- Reliance Globalcom. The intended time line for completion of the transaction is end May 2013. At this point, there can be no certainty that this will lead to a transaction, RCom said. A further announcement will be made in due course, if and when appropriate, the company added.

RCom also said that it has discontinued discussions with Batelco Group for selling its sake in Reliance Globalcom. RCom had earlier said in March 2013 that it was in discussions with Batelco Group with respect to Reliance Globalcom.

RCom's consolidated net profit declined 8.73% to Rs 303 crore on 2.39% growth in total income from operations to Rs 5130 crore in Q4 March 2013 over Q4 March 2012.

RCom has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain.

Powered by Capital Market - Live News