Reliance communications rallies 19% on back of heavy volumes

Reliance Communications rallies 19% on back of heavy volumes

STOCK MARKET - Reliance Communications (RCOM) has rallied 19% to Rs 24.65 on BSE in intra-day trade on the back of heavy volumes.

The trading volumes on the counter more than doubled with a combined 41.03 million shares, representing 1.6% of total equity of RCOM, changing hands on BSE and NSE so far.

Thus far in the calendar year 2017, the stock underperformed the market by falling 29% as compared to 17% rise in the S&P BSE Sensex till Friday, August 11, 2017.

According to reports, the National Company Law Tribunal (NCLT) is set to pronounce its decision on August 14 on whether or not to consider the proposal of merger between RCOM’s wireless business and Aircel.

RCOM and Aircel have already received approvals for the merger scheme from the Stock Exchanges, the Securities and Exchange Board of India (SEBI), the Competition Commission of India (CCI) and the shareholders of both companies.

“As part of this transaction, RCOM’s overall debt will reduce by Rs 14,000 crore, together with transfer of liability for spectrum installments of an additional approximately Rs 6,000 crore,” the company said in press release, while announcing June quarter results.

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