Reliance Communications (RCom) has surged 6% to Rs 112, extending its one-month long rally on the Bombay Stock Exchange (BSE).
The stock has rallied 102% from Rs 55.20, after Anil Ambani-owned firm signed Rs 1,200-crore agreement with elder brother Mukesh Ambani-owned Reliance Jio Infocomm to share its optic fibre network on April 2. The benchmark index has gained around 5% during the same period.
According to media reports, Ambani brothers will announce two more infrastructure sharing agreements between their respective telecommunication firms by mid June.
“Two more infrastructure sharing agreements respectively for the intra city optic-fiber network and telecom towers have moved to advanced stage and are likely to be announced in 4 to 6 weeks,” the Business Standard report suggests quoting a person familiar with the discussion.
If Reliance Jio enters into more significant further agreements to use RCom’s tower assets or buys out a portion of its tower or other infrastructure assets, it could be a significant positive for RCom, said analyst at JP Morgan in report dated April 2.
This arrangement, if it blossoms more meaningfully going forward, will likely help RCom deal better with balance sheet issues but RCom still faces the imperative of effecting an operational turnaround and stemming its continual market share erosion, he added.
Meanwhile, the stock currently trading its highest level since April 2011, have seen huge trading activity on the counter. A combined 51.42 million shares already changed hands till 1247 hours against an average around 53 million shares that were traded daily in past two weeks on BSE and NSE.
The stock has rallied 102% from Rs 55.20, after Anil Ambani-owned firm signed Rs 1,200-crore agreement with elder brother Mukesh Ambani-owned Reliance Jio Infocomm to share its optic fibre network on April 2. The benchmark index has gained around 5% during the same period.
According to media reports, Ambani brothers will announce two more infrastructure sharing agreements between their respective telecommunication firms by mid June.
“Two more infrastructure sharing agreements respectively for the intra city optic-fiber network and telecom towers have moved to advanced stage and are likely to be announced in 4 to 6 weeks,” the Business Standard report suggests quoting a person familiar with the discussion.
If Reliance Jio enters into more significant further agreements to use RCom’s tower assets or buys out a portion of its tower or other infrastructure assets, it could be a significant positive for RCom, said analyst at JP Morgan in report dated April 2.
This arrangement, if it blossoms more meaningfully going forward, will likely help RCom deal better with balance sheet issues but RCom still faces the imperative of effecting an operational turnaround and stemming its continual market share erosion, he added.
Meanwhile, the stock currently trading its highest level since April 2011, have seen huge trading activity on the counter. A combined 51.42 million shares already changed hands till 1247 hours against an average around 53 million shares that were traded daily in past two weeks on BSE and NSE.