Reliance rings up on pre-paid move

DALAL STREET SPIKES

Scrip of diversified major Reliance Industries was in the limelight on Reliance Infocomm's launch of pre-paid card that would enable the latter to boost telecom subscriptions.

As a result, the scrip was up Rs 15 to close at Rs 589 with volumes accounting for more than 24 lakh shares at the BSE.

According to analysts, the pre-paid launch will help increase customers for the company. Reliance Infocomm, 45 per cent owned by Reliance Industries, said it would launch a pre-paid card telecom service on Wednesday, February 11.

The company expects a surge in new subscriptions through the proposed pre-paid card service. It is estimated that two-thirds of the mobile subscriber base use pre-paid cards. RIL currently has 63 lakh post-paid mobile phone users.

The mobile services segment has emerged as the fastest growing area in India. Subscription base has gone up by leaps and bounds over the past two years.