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Shares of Reliance Communications were trading down by over 1 per cent as the Department of Telecommunications has approved the company’s merger with the wireless business of Sistema Shyam Teleservices Ltd.
RCom shares opened the session Rs 18.05, touched an intraday high of Rs 19.10 and a low of Rs 17.40. At 11.20 a.m., the shares were trading lower by 0.85 per cent at Rs 17.55 on the BSE and down by 1.13 per cent at Rs 17.50. In terms of equity volume, 21.10 lakh shares changed hands on the BSE in the morning trade.
With the merger, RCom will acquire approximately two million customers and additional annual revenues of around ₹700 crore. In addition, the operator will acquire 30 MHz in the 800 MHz band, which is useful for 4G services.
Earlier this month, Reliance Communications (RCom) and Aircel had called off talks to merge their mobile operations due to regulatory and legal hurdles. This casts doubts over the operators’ future as the merger was seen as vital for their survival in the competitive telecom sector.
“Legal and regulatory uncertainties, and various interventions by vested interests, have caused inordinate delays in receipt of relevant approvals for the proposed transaction,” an RCom statement had said.
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