RCom board okays 26pc stake sale; stock surges
Mumbai, Jun 7: While the Indian markets were reeling under the concerns of the Eurozone debt crisis and other weak global cues, Reliance Communications surged over 6 per cent on the Bombay Stock Exchange (BSE) on Monday, Jun 7 in response to the company board's approval for 26 per cent stake sale.
Shares of ADAG's Reliance Communications (RCom) soared 6.45 per cent to a high of Rs 179 in the early trade.
This uptrend is just the continuation of RCom northbound journey, which was earlier fueled on reports that RCom has started talks with some foreign telcos, including merger talks with MTN of Africa. However, the Monday, Jun 7 surge has been completely attributed to the company board's latest decision.
On Sunday, Jun 6, RCom board of directors gave its nod to induction of strategic/private equity investors into the company for an up to 26 per cent stake at an appropriate premium to the prevailing market price.
This development comes just two weeks after the long-standing legal battle between the Ambani brothers on the gas pricing ended with the Supreme Court ruling that the pricing should be based on government norms and not on the family agreement.