Reliance Communications rose 3.57% to Rs 36.30 at 10:13 IST on BSE on reports that the company is likely to announce tower sale deal with the Brookfield Group this week.
Meanwhile, the BSE Sensex was up 37.84 points, or 0.14%, to 26,345.82.
On the BSE, so far 4.60 lakh shares were traded in the counter, compared with average daily volumes of 16.09 lakh shares in the past one quarter. The stock had hit a high of Rs 36.45 and a low of Rs 35.50 so far during the day.
The stock hit a 52-week high of Rs 91.80 on 1 January 2016. The stock hit a record low of Rs 34.35 on 24 November 2016. The stock had underperformed the market over the past 30 days till 20 December 2016, falling 4.37% compared with the 2.11% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 26.67% as against Sensex's 7.72% decline.
The mid-cap company has equity capital of Rs 1,244.49 crore. Face value per share is Rs 5.
According to reports, The Brookfield Group is set to sign a definitive agreement with Reliance Communications (RCom) this week to buy a majority stake in the Anil Ambani-controlled telecoms company's tower unit for about Rs 11000 crore.
On 11 October 2016, RCom had announced signing of a non-binding term sheet with Brookfield Infrastructure Group (Brookfield) in relation to the proposed acquisition of RCom's nationwide tower assets and related infrastructure by Brookfield. Under the Term Sheet, the specified assets are intended to be transferred from Reliance Infratel (RITL) on a going concern basis into a separate special purpose vehicle (SPV), to be owned by Brookfield. RCom will continue as an anchor tenant on the tower assets, under a long term MSA, for its integrated telecommunications business. RCom will receive an upfront cash payment of Rs 11000 crore from the proposed transaction. RCom will also enjoy 49% future economic upside from the towers business, based on certain conditions. RCom had stated that it intended to utilize the proceeds of the proposed transaction solely to reduce its debt.
On a consolidated basis, net profit of Reliance Communications declined 80% to Rs 39 crore on 3.36% decline in net sales to Rs 5090 crore in Q2 September 2016 over Q2 September 2015.
RCom is an integrated telecommunications service provider.
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