RCom shares surge 13.5%; adds Rs 1,800 cr in m-cap
Shares of Reliance Communications on Wednesday surged 13.5 percent, adding nearly Rs 1,800 crore to its market value, in-tandem with an overall strong market.
Mumbai: Shares of Reliance Communications on Wednesday surged 13.5 percent, adding nearly Rs 1,800 crore to its market value, in-tandem with an overall strong market.
Analysts said that news flow in RCom has increased. The company has been able to strike deals recently and is expected to sale stake and generate funds to reduce its high debt.
After making a bullish opening and gaining about 14.5 percent to Rs 73.85 during the day, the stock finally ended at Rs 73.20, up 13.49 percent on the BSE.
At NSE, the scrip closed 13.49 percent higher at Rs 73.20.
Following the surge in the stock, the market capitalisation of RCom spurted by Rs 1,796 crore to Rs 15,108 crore.
RCom's stock has gained over 28 percent so far this month.
"Anil Ambani group stocks got the benefit of improvement in sentiments. Stocks such as Rcom, Rel Infra and Rel Capital have gained. There has been increase in news flow in these stocks recently," said Nagji K Rita, Chairman & MD, Inventure Growth and Securities.
Among other group stocks, Reliance Infrastructure surged 4.64 percent and Reliance Capital (3.59 percent).
Last week, billionaire brothers Mukesh and Anil sewed a multi-million dollar deal where the younger sibling will share his fibre-optic network to help the other roll out his telecom venture.
RIL will pay RCom Rs 1,200 crore for using its fibre optic network to launch its services.
Reliance Communications is also in advance stages of talks with Bahrain Telecommunications (Batelco) for selling 80 percent stake in its step-down subsidiary Reliance Globalcom for around 6,000 crore.
In the broader market, the BSE benchmark Sensex gained 187.97 points to end at 18,414.45.