Mumbai: Defying weakness in the stock market, Reliance Communications scrip extended Tuesday's rally and closed nearly 2 percent higher on Wednesday in view of its Rs 1,200 crore infrastructure sharing deal with RIL arm Reliance Jio Infocomm.
Shares of the Anil Ambani-promoted firm ended 1.90 percent higher at Rs 64.50 on the BSE. During the day, the stock had jumped 9 percent to Rs 69.
At the NSE, the scrip ended at Rs 64.55, up 1.73 percent from its previous close.
Billionaire Ambani brothers yesterday struck a Rs 1,200 crore deal wherein Mukesh will use his younger sibling's optic fibre network for launch of his telecom venture.
Under the pact, Mukesh Ambani-led Reliance Industries Ltd's telecom arm will hire nationwide optical fibre network of Reliance Communications for rollout of 4G services.
"Reliance Jio Infocomm Ltd and Reliance Communications Ltd announced the signing of a definitive agreement for approximately Rs 1,200 crore as one time indefeasible right to use (IRU) fees for sharing RCom's nationwide inter-city fibre optic network infrastructure," RCom had said in a statement Tuesday.
Under the terms of the agreement, Reliance Jio Infocomm will utilise multiple fibre pairs across RCom's 1,20,000 kilometres inter-city fibre optic network to provide the backbone for rolling out its 4G services.
As per the agreement, RCom will in turn have reciprocal access to optic fibre infrastructure to be built by Reliance Jio Infocomm in the future.
Meanwhile, the BSE 30-stock index, Sensex, on Wednesday closed at 18,801.64, down 239.31 points.