Reliance Communications rose 2.09% to Rs 63.50 at 10:36 IST on BSE on reports the company is set to announce a pan-India spectrum sharing-cum-trading agreement with Mukesh Ambani-owned Reliance Jio Infocomm.
Meanwhile, the BSE Sensex was down 314.67 points, or 1.22%, to 25,404.91.
On BSE, so far 18.32 lakh shares were traded in the counter, compared with an average volume of 25.63 lakh shares in the past one quarter.
The stock hit a high of Rs 64.40 and a low of Rs 61.30 so far during the day. The stock hit a 52-week high of Rs 117.40 on 18 November 2014. The stock hit a 52-week low of Rs 45.65 on 25 August 2015.
The stock had underperformed the market over the past one month till 9 September 2015, sliding 15.14% compared with 8.91% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 3.24% as against Sensex's 2.88% decline.
The large-cap company has an equity capital of Rs 1244.49 crore. Face value per share is Rs 5.
According to reports, Reliance Communications (RCom) and Reliance Jio Infocomm are set to announce a pan-India spectrum sharing-cumtrading agreement as early as next week, which will give Reliance Jio more bandwidth options to offer 4G services across most parts of the country.
Executives from both companies are reportedly scheduled to meet telecom department officials from the Wireless Planning & Coordination wing. The move is a precursor to signing the spectrum sharing/trading agreement, which is likely to be announced next week, reports added.
RCom's stock price jumped 11.6% to Rs 62.20 yesterday, 9 September 2015, after the Union Cabinet yesterday, 9 September 2015, approved guidelines allowing telecom spectrum trading. Spectrum trading will allow better spectrum usages, as the idle spectrum from the hands of one service provider gets transferred to the other service provider who is facing spectrum crunch.
Reports suggested that spectrum trading will allow RCom to cut back its debt while allowing Reliance Jio to expand its airwaves as it launches in December 2015. RCom had over Rs 38000 crore in debt as of 30 June 2015, a burden that it seeks to reduce by trying to sell its tower and overseas business units, as well as monetise its DTH arm and land holdings, reports said.
On a consolidated basis, Reliance Communications' (RCom) net profit rose 34.1% to Rs 177 crore on 2.6% increase in net sales to Rs 5429 crore in Q1 June 2015 over Q1 June 2014.
RCom is an integrated telecommunications service provider.
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