Anil Ambani’s Reliance Communication just gave you 15% gains; Know why
Such an outburst of love in Anil Ambani’s RCom was due to a good news given by Supreme Court, which meant that the deal with brother Mukesh Ambani’s Reliance Jio Infocomm is soon set to become a reality.
Investors were buying shares of Reliance Communication with excitement today and the company has given them a massive over 15% return in just one day’s time. RCom shares were trading at Rs 13.88 per piece higher by Rs 1.14 or 8.94% on the index at around 1410 hours. However, the company has risen by overall 15.45% so far in today’s trading session after it touched an intraday high of Rs 14.72. Such an outburst of love in Anil Ambani’s RCom was due to a good news given by Supreme Court, which meant that the deal with brother Mukesh Ambani’s Reliance Jio Infocomm is soon set to become a reality.
According to a BloombergQuint report, the Supreme Court ordered Reliance Communications Ltd. to furnish bank guarantees of Rs 1,400 crore within two days, paving the way for the sale of its spectrum assets to Reliance Jio Infocomm Ltd.
Reportedly, the bench headed by Justice Rohinton Nariman asked the government to clear the spectrum sale within seven days after the guarantee is submitted. The court said that corporate guarantee, backed by properties as assurance, is sufficient.
In December 2017, RCom had signed a pact with Reliance Jio, where it will sell its wireless spectrum, tower, fibre and MCN assets. The proceeds of this deal is seen to be used by Anil Ambani for reducing the company’s nearly Rs 46,000 crore debt.
Under the deal involved, 122.4 MHz of 4G spectrum in the 800/900/1800/2100 MHz bands, over 43,000 telecom towers, 178,000 km of fibre and 248 media convergence nodes.