Reliance Communications rose 1.43% to Rs 28.35 at 11:15 IST on BSE after the company said its shareholders approved the monetization of assets.
The announcement was made during trading hours today, 16 February 2018.Meanwhile, the S&P BSE Sensex was down 69.66 points, or 0.20% to 34,227.81.
On the BSE, 37.76 lakh shares were traded in the counter so far compared with average daily volumes of 1.53 crore shares in the past one quarter. The stock had hit a high of Rs 29 and a low of Rs 27.85 so far during the day. The stock hit a 52-week high of Rs 41.77 on 29 December 2017. The stock hit a record low of Rs 9.60 on 15 November 2017.
The stock had underperformed the market over the past 30 days till 15 February 2018, falling 13.73% compared with 2.24% fall in the Sensex. The scrip had outperformed the market in past one quarter, rising 130.99% as against Sensex's 2.86% rise. The scrip had also underperformed the market in past one year, falling 15.94% as against Sensex's 21.19% rise.
The mid-cap company has equity capital of Rs 1382.77 crore. Face value per share is Rs 5.
The shareholders of Reliance Communications (RCom) approved the monetization of its assets. The company announced the results of postal ballot on 15 February 2018, whereby the shareholders approved the resolution to monetize the spectrum, towers, fiber, telecom infrastructure and other assets with overwhelming majority of 99.91%.
RCom's asset monetization is proceeding on fast track to close by March 2018, subject to lenders' consents and other regulatory approvals. Post monetization, the debt and liabilities of the company will reduce by approximately Rs 25000 crore by prepayment of debts and transfer of Department of Telecommunications' spectrum installments.
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RCom's continuing operations will comprise stable and profitable B2B focused businesses, including Indian and Global Enterprise, Internet Data Centres and the largest private submarine cable network in the world. These B2B businesses are stable, capital light and have sustained and predictable annuity revenues and profits, with immense growth potential amidst relatively low competitive intensity.
On a consolidated basis, RCom reported net loss of Rs 113 crore in Q3 December 2017 as against net loss of Rs 488 crore in Q3 December 2016. Net sales declined 31.70% to Rs 1144 crore in Q3 December 2017 over Q3 December 2016.
RCom has established a pan-India, Next-Generation, digital network that is capable of supporting best-of-class services spanning the entire communications value chain. Reliance Communications owns and operates the world's largest Next-Generation IP-enabled connectivity infrastructure, comprising fibre optic cable systems in India, the USA, Europe, Middle East and the Asia Pacific region.
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