RCom share rallies on SC nod to sell telecom assets\, scrip zooms 30% in 4 days

RCom share rallies on SC nod to sell telecom assets, scrip zooms 30% in 4 days

Continuing its momentum for the fourth straight session, shares of RCom climbed 2.89 per cent to close at Rs 17.10 apiece on the Bombay Stock Exchange, after opening higher at Rs 17.00 against a previous closing price of Rs 16.62.

Tables have turned and bulls are back in business for Reliance Communications (RCom) after its real estate arm issued a Rs 1,400 crore corporate guarantee to the telecom department (DoT), paving the way for completion of the Anil Ambani-led telecom company's spectrum sale to older brother Mukesh Ambani's Reliance Jio Infocomm.

Continuing its momentum for the fourth straight session, shares of RCom climbed 2.89 per cent to close at Rs 17.10 apiece on the Bombay Stock Exchange, after opening higher at Rs 17.00 against a previous closing price of Rs 16.62. During the day's trade, scrip touched an intra-day high and low of Rs 18.60 and Rs 16.90, respectively.

Stocks of the telecom company settled trade at Rs 17.00, up 2.41 per cent, on the National Stock Exchange.

The catalyst behind the recent share price spike was the clearance of legal hurdle to complete spectrum trading transaction to Mukesh Ambani-led telecom company, Reliance Jio.

In the last four trading sessions, Reliance Communications shares had surged over 30 per cent after its subsidiary submitted corporate guarantee to Department of Telecommunications.

Earlier on November 30, the Supreme Court upheld the earlier order of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) and ordered the Department of Telecommunications to grant a No-Objection to Reliance Communications for spectrum trading within seven days. A two-judge bench of the SC headed by justice Rohinton F Nariman allowed RCom to furnish corporate guarantee worth Rs 1,400 crore via its sister firm Reliance Realty to the Department of Telecommunications (DoT).

RCom had announced exit from wireless business last year due to lack of profitability. The company has signed definitive binding agreements with Reliance Jio Infocomm for sale of wireless spectrum, tower, fiber and Media Convergence Node (MCN) assets.

The company, which intends to utilise the proceeds of the monetisation of this cash deal solely for pre-payment of debt to its lenders, expects the transactions to close in a phased manner between January and March 2018, subject to lenders' and other applicable approvals.

Edited by Chitranjan Kumar