ADAG firm Reliance Communications (RCom) today surged 6 per cent on the BSE, a day after its board gave its approval for 26 per cent stake sale, even as the broader market was trading in the negative.
Shares of RCom surged 6.45 per cent to a high of Rs 179 on the Bombay Stock Exchange. The BSE benchmark index, Sensex, fell by 2.51 per cent or 430.96 points to touch a low of 16,686.73.
Yesterday, the board of directors of RCom gave its in-principle approval to induction of strategic/private equity investors into the company for an up to 26 per cent stake at an appropriate premium to the prevailing market price.
On the National Stock Exchange, the stock climbed to a high of Rs 178.70, up 6 per cent. Shares of Reliance Communications have risen nearly 29 per cent since June 1, to touch a high of Rs 179 on the BSE today.
The board's decision has come within two weeks of the Ambani bothers calling a truce and terminating the no-compete agreement of 2005 between the two groups.
RCom shares have risen sharply over the past few sessions on reports that RCom has started talks with some foreign telcos, including merger talks with MTN of Africa and UAE's Etisalat, for offloading part of its stake to finance future expansion plans such as the rollout of 3G mobile services.
There are also media reports that RCom is in informal talks with the US telecom giant, AT&T, for selling its minority stake.
