Promoter Group holding in RCom shrinks to 53%
ET Bureau|
Updated: Nov 11, 2017, 12.42 AM IST
KOLKATA: The promoter group holding in Reliance Communications has shrunk by 5.92% points to 53.08% to accommodate Sistema Shyam Teleservices (SSTL), which now owns 10% of the Anil Ambani-led telco, according to a latest regulatory filing of the company’s shareholding pattern as on October 31.
Last month, the telecom department (DoT) had cleared the merger of RCom and SSTL, which retails CDMA-based mobile services under the MTS brand in nine circles. All remaining RCom shareholders have seen a proportionate dilution of their holdings to accomodate SSTL, a company insider said.
But since SSTL has been categorised as a public stakeholder of RCom, the overall public holding in the Anil Ambani-led carrier has climbed to 46.15% from 40.15% in the previous shareholding disclosure for the quarter ended September. RCom shares fell 6.33% to Rs 14.05 on BSE on Friday.
With the recent merger nod, the Indian telecom business of Russia’s Sistema JSFC is being transferred to RCom, which gains 3.75 MHz of valuable spectrum in 850 MHz band in Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, UP (West), Kolkata, West Bengal and Rajasthan. SSTL has airwaves in these circles, excepting Rajasthan, which are valid till FY 2033, and therefore would reduce the need for RCom to buy airwaves in future auctions.
RCom’s CDMA spectrum in eight circles is set to expire in 2021. RCom is currently undergoing strategic debt restructuring (SDR). Last month, it presented a zero write-off plan to lenders under which banks can convert some its debt and take a 51% stake in the telecom company. Banks could then raise funds by selling the telco’s towers and spectrum to potential buyers, and monetise the company’s real estate assets as well.
RCom has said it will run a non-mobile business, and will be shutting down its 2G and 3G wireless operations to concentrate on the B2B segment and 4G business. The company has also said it is likely to function as a mobile virtual network operator (MVNO) that will offer 4G services once it sheds its 2G and 3G voice business.
Last month, the telecom department (DoT) had cleared the merger of RCom and SSTL, which retails CDMA-based mobile services under the MTS brand in nine circles. All remaining RCom shareholders have seen a proportionate dilution of their holdings to accomodate SSTL, a company insider said.
But since SSTL has been categorised as a public stakeholder of RCom, the overall public holding in the Anil Ambani-led carrier has climbed to 46.15% from 40.15% in the previous shareholding disclosure for the quarter ended September. RCom shares fell 6.33% to Rs 14.05 on BSE on Friday.
With the recent merger nod, the Indian telecom business of Russia’s Sistema JSFC is being transferred to RCom, which gains 3.75 MHz of valuable spectrum in 850 MHz band in Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, UP (West), Kolkata, West Bengal and Rajasthan. SSTL has airwaves in these circles, excepting Rajasthan, which are valid till FY 2033, and therefore would reduce the need for RCom to buy airwaves in future auctions.
RCom’s CDMA spectrum in eight circles is set to expire in 2021. RCom is currently undergoing strategic debt restructuring (SDR). Last month, it presented a zero write-off plan to lenders under which banks can convert some its debt and take a 51% stake in the telecom company. Banks could then raise funds by selling the telco’s towers and spectrum to potential buyers, and monetise the company’s real estate assets as well.
RCom has said it will run a non-mobile business, and will be shutting down its 2G and 3G wireless operations to concentrate on the B2B segment and 4G business. The company has also said it is likely to function as a mobile virtual network operator (MVNO) that will offer 4G services once it sheds its 2G and 3G voice business.
