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Shares of Reliance Communications Ltd surged as much as 4.1 per cent to Rs 16.50 on Tuesday as the company has entered into a binding memorandum of understanding with Veecon Media and Television Ltd, for the sale of its subsidiary Reliance BIG TV, engaged in the business of DTH services across India.
Pursuant to the transaction, the buyer will acquire the entire shareholding of RBTV with business on “as-is where-is” basis, along with all existing trade liabilities and contingent liabilities.
RCom shares opened the session higher at Rs 16.20 against the previous close of Rs 15.95, touched an intraday high of Rs 16.50 and a low of Rs 15.35. In terms of equity volume, 50.95 lakh shares exchanged hands on the BSE.
However, the stock ended down by 1.89 per cent at Rs 15.55 on the BSE.
“Believe a complete exit by Big TV would still have been ideal for the incumbents, as it would likely have led to further industry consolidation and, hence, to a boost (albeit minor) to their bargaining power,” Macquarie analysts wrote in a note
RCom stock has lost 53.5 per cent this year as of Monday's close.
(With inputs from Reuters)
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