RCom surges 13.5%; stock hits 52-week high in intra-day
Shares of Reliance Communications Monday surged about 13.5 percent after the company said it is in advanced stage of talks for selling a stake in enterprise business unit to a consortium of PE funds that includes Samena Capital.
Mumbai: Shares of Reliance Communications Monday surged about 13.5 percent after the company said it is in advanced stage of talks for selling a stake in enterprise business unit to a consortium of PE funds that includes Samena Capital.
The telecom company's scrip jumped 15 percent to Rs 99 -- its 52 week high in intra-day trade on the BSE. It finally ended at Rs 97.70, up 13.47 percent.
At NSE, the stock was up 13.18 percent at Rs 97.45.
Tracking gains in the stock, the market value of RCom rose by Rs 2,394 crore to Rs 20,165 crore.
Anil Ambani Group firm, which was previously in talks with Bahrain Telecommunications Co (Batelco) for selling a stake in Reliance Globalcom Ltd, hopes to conclude a deal with the consortium of PE funds by May-end, Reliance Communications (RCom) had said last week.
The consortium, which also includes Providence and Carlyle, may buy up to 80 percent in Reliance Globalcom which also owns the group's undersea cable business, for USD 1-1.2 billion, industry sources had said.
The stake sale is expected to be used by RCom to lower its debt burden which stood at around Rs 37,000 crore as on December 31, 2012.
"Samena Capital, in a proposed consortium with certain other global PE funds, is at an advanced stage of the process of due diligence and completion of definitive documents in relation to the acquisition of Reliance Globalcom Ltd," RCom said in a filing to the stock exchanges.