RCom gains on plans to acquire Sistema assets in all-stock deal

Reliance Communications rose 1.19% to Rs 59.55 at 10:02 IST on BSE as the company and Russian conglomerate Sistema are in exclusive talks to merge their Indian telecom businesses through a stock swap.

Meanwhile, the BSE Sensex was down 117.19 points, or 0.44%, to 26,469.36.

On BSE, so far 6.61 lakh shares were traded in the counter, compared with an average volume of 15.68 lakh shares in the past one quarter.

Trading in the counter was volatile. The stock rose 2.97% at the day's high of Rs 60.60 so far during the day. The stock rose 0.68% at the day's low of Rs 59.25 so far during the day.

The stock hit a 52-week high of Rs 154.50 on 24 June 2014. The stock hit a 52-week low of Rs 54.50 on 3 June 2015.

The stock had underperformed the market over the past one month till 15 June 2015, sliding 9.67% compared with 2.70% fall in the Sensex. The scrip had also underperformed the market in past one quarter, falling 15.99% as against Sensex's 6.72% fall.

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

Reliance Communications (RCom) after market hours yesterday, 15 June 2015, announced that the company and AFK Sistema have entered into exclusive discussions on a potential merger between the Indian telecom business of Sistema Shyam TeleServices (SSTL) and RCom through a stock swap. The discussions are indicative and non-binding in nature and remain subject to due diligence, definitive documentation and approvals, as may be necessary, RCom said. There is no certainty that any transaction will result, it added.

On a consolidated basis, net profit of Reliance Communications (RCom) rose 46.15% to Rs 228 crore on 5.81% increase in net sales to Rs 5683 crore in Q4 March 2015 over Q4 March 2014.

RCom is an integrated telecommunications service provider. The company has a customer base of over 118 million including over 2.6 million individual overseas retail customers.

Powered by Capital Market - Live News