RIL inches up as telecom unit signs tower sharing pact with RCom

The announcement was made during trading hours today, 7 June 2013.

Meanwhile, the S&P BSE Sensex was up 148.83 points or 0.76% at 19,668.32.

On BSE, 1.69 lakh Reliance Industries (RIL) shares changed hands as against average daily volume of 4.66 lakh shares in the past one quarter.

The stock hit a high of Rs 802 and a low of Rs 789.50 so far during the day. The stock had hit a 52-week high of Rs 954.80 on 21 January 2013. The stock had hit a 52-week low of Rs 698.40 on 6 June 2012.

The stock had underperformed the market over the past one month till 6 June 2013, sliding 3.55% compared with the Sensex's 0.78% fall. The scrip had also underperformed the market in past one quarter, declining 5.09% as against Sensex's 1.39% rise.

The large-cap company has equity capital of Rs 3229.43 crore. Face value per share is Rs 10.

Under the terms of the agreement, Reliance Jio Infocomm (RJIL) will utilise upto 45,000 ground and rooftop based towers across RCom's nationwide network for accelerated roll-out of its state-of-the-art 4G services. The agreement provides for joint working arrangements to configure the scope of additional towers to be built at new locations to ensure deep penetration and seamless delivery of next generation services.

 

This agreement follows the inter-city optic fiber sharing agreement already signed in April 2013 as part of a comprehensive framework of business co-operation between RJIL and RCom.

RJIL is a subsidiary of RIL. It is a pan India operator with broadband wireless access (BWA) spectrum across 22 circles capable of offering fourth generation (4G) wireless services.

RIL's net profit surged 31.9% to Rs 5589 crore on 1.2% decline in net sales to Rs 84198 crore in Q4 March 2013 over Q4 March 2012.

RIL's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and broadband.

Shares of Reliance Communications (RCom) were off 0.68% at Rs 117.25. The stock was volatile. The stock lost as much as 1.18% at the day's low of Rs 116.65 so far during the day. The stock rose as much as 1.56% at the day's high of Rs 119.90 so far during the day, which is a 52-week high for the counter. The stock had hit a record low of Rs 46.60 on 30 August 2012.

RCom's consolidated net profit declined 8.7% to Rs 303 crore on 8.9% growth in net sales to Rs 4985 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.

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