Reliance Industries rose 2.31% to Rs 906.55 at 12:15 IST on BSE after the company said its telecom arm, Reliance Jio Infocomm, has inked a telecom tower-sharing agreement with independent telecom tower firm Viom Networks.
The company made the announcement on Monday, 17 March 2014.
Meanwhile, the BSE Sensex was up 143.52 points, or 0.66%, to 21,953.32.
On BSE, so far 2.71 lakh shares were traded in the counter, compared with an average volume of 2.70 lakh shares in the past one quarter.
The stock hit a high of Rs 908.80 and a low of Rs 888.80 so far during the day. The stock hit a 52-week high of Rs 927.90 on 19 July 2013. The stock hit a 52-week low of Rs 765 on 28 March 2013.
The stock had outperformed the market over the past one month till 14 March 2014, rising 7.86% compared with the Sensex's 7.08% rise. The scrip had, however, underperformed the market in past one quarter, rising 2.64% as against Sensex's 5.28% rise.
The large-cap company has an equity capital of Rs 3231.90 crore. Face value per share is Rs 10.
Reliance Jio lnfocomm (Reliance Jio), a subsidiary of Reliance Industries (RIL), will launch its services across India using telecom-tower infrastructure provided by Viom Networks. Under a master services agreement, Reliance Jio will use Viom Networks' pan India passive telecom infrastructure having a footprint of over 42,000 telecom towers.
Viom Networks, a joint venture between Tata Teleservices and SREI Infrastructure, is India's largest independent telecommunications infrastructure company. Shares of SREI Infrastructure jumped 7.37% to Rs 26.95.
"This agreement is in line with our mission of a pan India launch spanning next-generation voice and data services and leveraging existing telecom infrastructure," said Sanjay Mashruwala, Managing Director, Reliance Jio. "We look forward to partnering with Viom Networks for roiling out services across the country."
Reliance Jio holds a pan-India Unified License and is currently building a network to offer next generation high-speed data services. The company believes that the Indian market is highly underserviced. There is thus a deep demand undercurrent for reliable (4th generation) high speed internet connectivity. rich communication services, and various digital services on pan-India basis in key domains such as education, healthcare, security, financial services, government citizen interfaces and entertainment.
The mission therefore is to provide anytime, anywhere access to innovative and empowering digital content, applications and services, thereby propelling India into a global leadership league in the digital economy, the company said.
"From a conventional tower company, we are transforming ourselves as an innovation-driven, data-centric infra solutions provider," said Syed Safawi, CEO, Viom Networks. "We are delighted to partner with Reliance Jio and offer our countrywide network infrastructure. Our consistent delivery of high network up time, on-time reliable project delivery capability, and optimal operation and a maintenance cost offer a great value package."
Reliance Jio is the first telecom operator to hold pan India Unified License. It holds spectrum in 1800 MHz (across 14 circles) and 2300 MHz (across 22 circles) capable of offering fourth generation (4th) wireless services.
On 4 March 2014, Reliance Jio and Bharti Infratel, India's leading provider of telecom tower infrastructure, announced the signing of a master services agreement. Under the agreement, Reliance Jio would utilize the telecom tower infrastructure of Bharti Infratel to launch its services across the country. As per the agreement, the pricing would be at 'arm's length,' based on prevailing market rates.
RIL's net profit rose 0.2% to Rs 5511 crore on 10.3% growth in net sales to Rs 103521 crore in Q3 December 2013 over Q3 December 2012.
RIL's gross refining margin (GRM) declined to $7.6 per barrel from $7.7 per barrel in Q2 September 2013 and $9.6 per barrel in Q3 December 2012.
RIL's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and broadband services.
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