The announcement was made on Sunday, 7 July 2013.
Meanwhile, the S&P BSE Sensex was down 232.83 points, or 1.19%, to 19,262.99.
On BSE, 16.15 lakh shares were traded in the counter as against an average daily volume of 66.73 lakh shares in the past one quarter.
The stock hit a high of Rs 148 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 137.60 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 5 July 2013, rising 16.54% compared with the Sensex's 0.37% fall. The scrip had also outperformed the market in past one quarter, spurting 115.24% as against Sensex's 5.67% rise.
The large-cap telecom company has an equity capital of Rs 1032.01 crore. Face value per share is Rs 5.
Reliance Communications (RCom) said that its board of directors has in-principle decided on a demerger of the real estate held by RCom into a separate unit, Reliance Properties, to unlock substantial value for the benefit of its approximately 20 lakh institutional and retail shareholders.
The proposed separation of real estate into a separate unit is part of RCom's strategic plan to divest non-core assets, and focus on its core wireless and enterprise business. Reliance Properties will be a separate listed company. All shareholders of RCom will receive fully tradeable pro-rata shareholding in Reliance Properties, free of cost, based on their existing shareholding in RCom.
The preliminary and indicative monetisable value of RCom's real estate on development is estimated by independent valuers at over Rs 12000 crore ($2 billion), which is equal to Rs 60 ($1) per RCom share.
Reliance Properties will work with leading global partners to develop the real estate, and unlock this value for the benefit of its shareholders. The properties proposed to be developed by Reliance Properties include prime land at Dhirubhai Ambani Knowledge City, Navi Mumbai measuring nearly 135 acres, with saleable area of over 15 million square feet and prime property near Connaught Place, New Delhi measuring nearly 4 acres.
The board has constituted a committee to consider the matter in detail, and prepare the necessary Demerger Scheme, etc. in consultation with legal and other advisors. The demerger will be subject to approvals from shareholders, lenders, Courts, etc, RCom said in a statement.
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
