| Reliance Communications Ventures Ltd (RCoVL) made a flying start on the bourses today, with a market capitalisation of Rs 35,574 crore. |
| The scrip was listed on the Bombay Stock Exchange (BSE) at Rs 290 a share, reached the day's high of Rs 309, and closed at Rs 290.85. On the National Stock Exchange (NSE), RCoVL was listed at Rs 307, which was also its day's high, and closed at Rs 291.50. |
| About Rs 2,145 crore worth shares were traded on the two bourses, accounting for 17 per cent of the total traded value on the exchanges. |
| "This is the first Indian company that has created great value for 2 million shareholders without an IPO," Reliance-Anil Dhirubhai Ambani Group (Reliance-ADAG) Chairman Anil Ambani said at a press conference after market hours. |
| "I am committed to move to a simpler and cleaner holding structure. The objective of the demerger was to avoid cross-ownership and to bring in all telecom and information technology companies under one roof," he added. |
| Ambani said the birth of Reliance-ADAG had generated for its 2 million-plus shareholders incremental wealth of over Rs 70,000 crore, which in less than nine months was equal to Reliance Industries' entire market capitalisation built over 28 years. |
| With today's closing price of RCoVL, Reliance-ADAG raced to the fourth position with a Rs 71,456 crore market capitalisation. RCoVL ranks 14th among all listed companies on the bourses. |
| However, the market capitalisation of the ADAE group would work out to Rs 89,782 crore if it includes the imputed value of RCoVL assuming 100 per cent ownership of all telecom assets on indicative basis, though RCoVL holds 66 per cent in the operating companies. |
| Reliance-ADAG, however, has a lot of catching up to do with Mukesh Ambani's Reliance Group, which has a total market capitalisation of Rs 1,08,599 crore. Reliance Group continues to be the second largest group in the market cap ranking while the Tata group is at the top with Rs 198,816 crore worth of market cap. |
| Bharti Tele-Ventures, headed by Sunil Mittal, ranks third with a market cap of Rs 76,396 crore. |
| The current market cap of the ADAE group is based on its seven listed companies. Three demerged entities -- Reliance Capital Ventures, Reliance Natural Resources and Reliance Energy Ventures -- were listed on the bourses in last three weeks and Reliance Communications Ventures got listed today. |
| These four companies have unlocked market value of Rs 53,954 crore following their listings. The other three listed companies, Reliance Energy, Reliance Capital and Adlabs (in which the group holds 51 per cent stake) add another 25,167 crore to the group's market capitalisation. |
| Reliance Energy has a total market value of Rs 13,212 crore followed by Reliance Capital Rs 10,504 crore while Adlab's market value is Rs 1,451 crore. Other newly listed group companies such as Reliance Energy Ventures have a total market cap of Rs 5547 crore, Reliance Natural Resources Rs 2,214 crore and Reliance Capital Ventures Rs 2,954 crore. |
| Our Market Bureau adds: With analysts differing substantially on the quality of customers and earnings of Reliance Infocomm, estimates of listing price of RCVL varied widely from Rs 275 to 350 per share before the stock was listed. |
| Currently, foreign institutional investors hold 23 per cent stake in the RCVL and coupled with the 7 per cent held by GDR investors, the total foreign holding is 30 per cent. The company would soon hike the foreign investment limit to 74 per cent which is the maximum permissible limit allowed by the regulator. |
| ROCL currently has networth of Rs 11,076 crore after writing-off Rs 4400-odd crore. Net debt stood at Rs 3702 crore. |
| "The stock has listed in line with expectations and going forward the stock should be able deliver decent appreciation" said P Phani Sekhar of Angel Broking. "In the short term, the stock is expected to trade at a high of 350," said a broker. |
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