Second most valued listed telecom firm after Bharti Telecom

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M-cap is

valued at Rs 35,520 crore

With this

, all the four companies spun-off from Reliance Industries have been listed

Seeks FII

investment hike to 74%

RCoVL is

the holding company for Reliance Infocomm Ltd

Mumbai, March 6

Reliance Communications Ventures Ltd (RCoVL), the holding company of Anil Ambani Group's telecom businesses, on Monday was listed on the bourses at Rs 290 (BSE) and Rs 307 (NSE), much above the analysts forecast of Rs 270-280 range, making it the second most valued listed telecom firm on Indian bourses after Bharti Telecom Ventures Ltd (BTVL).

Mr Anil Ambani, Chairman of Anil Dhirubhai Ambani Group rang the ceremonial opening bell at the Bombay Stock Exchange, watched by among others his mother Ms Kokilaben and wife Ms Tina Ambani, commencing the listing and trading of RCoVL.

At the closing price of Rs 291.15, RCoVL is valued at Rs 35,520.30 crore, second to the BTVL's (the other pan-Indian telecom firm) Rs 77,268 crore. RCoVL is the holding company for CDMA-based telecom company Reliance Infocomm Ltd, GSM-based telecom company Reliance Telecom Ltd, bandwidth company Flag Telecom Ltd and Reliance Communication Infrastructure Ltd.

The holding company was spun-off from Reliance Industries Ltd to settle the ownership dispute between the Ambani brothers Mr Mukesh Ambani and Mr Anil Ambani.

Following the listing of RCoVL, all the four companies spun-off from Reliance Industries - the other three being Reliance Energy Ventures Ltd (REVL), Reliance Capital Ventures Ltd (RCVL), Reliance Natural Resources Ltd (RNRL) got listed on the bourses.

RCoVL shares hit a high of Rs 309 on BSE. On NSE, the shares closed at Rs 290.55. Over 40 crore shares changed hands on NSE while another 2.17 crore shares were traded on BSE.

Reliance Industries shareholders received 100 shares in RCoVL for every 100 shares held. "RCoVL is the first company to be created with such a large value during listing without an IPO," Mr Anil Ambani, later told newspersons here.

Meanwhile, RCoVL on Monday sought shareholders approval through postal ballot to hike the foreign investor cap to 74 per cent. Currently, FIIs hold 30 per cent (23 per cent through FIIs in the country and 7 per cent through the GDR route). "The foreign stake can go up to 74 per cent, " Mr Ambani said.

(This article was published in the Business Line print edition dated March 7, 2006)
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