RCom spurts after paring debt

The announcement was made during trading hours today, 1 July 2013.

Meanwhile, the S&P BSE Sensex was up 155.88 points, or 0.80%, to 19,551.69.

On BSE, 71.13 lakh shares were traded in the counter as against an average daily volume of 65.77 lakh shares in the past one quarter.

The stock hit a high of Rs 131.75 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 118.20 so far during the day. 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 28 June 2013, rising 4.79% compared with the Sensex's 3.79% fall. The scrip had also outperformed the market in past one quarter, surged 113.95% as against Sensex's 2.97% rise.

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

Reliance Communications (RCom) announced it has completed full repayment of two syndicated ECB loan facilities of $500 million each, aggregating $1 billion, during the quarter ended 30 June 2013. These loans were availed in the year 2007 from a group of international banks.

In addition, RCom has made scheduled repayments of another $207 million (Rs 1200 crore) in respect of other foreign currency loans, on the respective due dates during the quarter ended 30 June, 2013. The repayments have been from RCom's rupee resources.

RCom said its foreign currency debt is steadily declining every year, and the interest outgo on such debt is fully covered by dollar denominated earnings from the Reliance Globalcom business.

Earlier on 10 May 2013, RCom made full repayment of a syndicated ECB loan facility of $500 million on the due date. The loan was taken in 2007 from a group of international bank.

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

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