Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

RCOM’s decision should boost other promoters: SBI chairman

Author: IANS/Friday, December 29, 2017/Categories: Banking & Financial Services

RCOM’s decision should boost other promoters: SBI chairman

New Delhi, Dec 29 - A day after Reliance Communications (RCOM) announced it was selling its wireless assets to Reliance Jio, State Bank of India Chairman Rajnish Kumar termed it a good development and would hopefully set an example for other promoters.

"It is a very good and welcome development. The banks have been fully protected and no loss is expected. Despite the fact that there is a stress in the telecom sector, I am hoping that this will set a very good example for the other promoters also of the companies which are under stress," Kumar said.

Reliance Jio Infocomm (RJIL), a subsidiary of Reliance Industries Limited, on Thursday announced signing of a "definitive agreement" for the acquisition of specified assets of RCOM and its affiliates.

Consequent to the agreement, Jio or its nominees will acquire assets under four categories -- towers, optic fibre cable network, spectrum and media convergence nodes -- from RCOM and its affiliates, Jio said in a statement on Thursday.

RCOM's assets which were put up for monetisation include 122.4 MHz of 4G Spectrum in the 800/900/1800/2100 MHz bands, over 43,000 towers, around 1.78 lakh km of fibre with pan-India footprint and 248 media convergence nodes, covering five million sq ft used for hosting telecom infrastructure. 

Reliance Group Chairman Anil Ambani had on Tuesday said the company has achieved full resolution of Reliance Communications' debt, reducing it by Rs 25,000 crore to Rs 6,000 crore by monetising assets.

RCOM bonds jumped from 34 cents to 55 cents on announcement of asset sales to Jio, according to industry sources.

"RIL's acquisition of RCOM's wireless telecom infrastructure, while not entirely surprising, does bring synergies for RIL's telecom business which currently has lease/sharing arrangements with RCOM for some of its existing infrastructure - spectrum, towers and optic fibre backbone," analyst Morgan Stanley said in a report.

Maintaining its upward trajectory RCOM shares were trading at Rs 34.98 per share, up 12.98% at 12.37 p.m. at the BSE.

Print Rate this article:
No rating

Number of views (202)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free